MECON LIMITED · 2018. 11. 28. · of GAIL (India) Limited, has assigned MECON Limited, New Delhi...

GAIL GAS LIMITED

MECON LIMITED Delhi – 110 092

Detailed Feasibility Report

for CITY GAS DISTRIBUTION

in

TAJ TRAPEZIUM ZONE GEOGRAPHICAL AREA

NETWORK

GAIL GAS LIMITED

MECON LIMITED Delhi – 110 092

05.15.23LW.DFR..TTZ

Detailed Feasibility Report

for CITY GAS DISTRIBUTION

in

TAJ TRAPEZIUM ZONE GEOGRAPHICAL AREA

NETWORK

CONTENTS

GAIL GAS

DETAILED FEASIBILITY REPORT

City Gas Distribution Network Taj Trapezium Zone

M E C O N

H:\rajesh\Market Survey\TTZ\Final\Contents.doc Contents - 1/2 © 2010 MECON Limited. All Rights Reserved

C O N T E N T S

Chapter No. Description Total Pages 01.00 EXECUTIVE SUMMARY 17

02.00 INTRODUCTION 06 03.00 METHODOLOGY OF STUDY 03 04.00 DEMAND PROJECTION 07 05.00 SYSTEM DESIGN 17 06.00 SYSTEM DESCRIPTION 20

07.00 IMPLEMENTATION SCHEDULE 07 08.00 ORGANISATION STRUCTURE & MANPOWER PLANNING 05

09.00 CAPITAL COST ESTIMATE 08 10.00 OPERATING COST 05 11.00 FINANCIAL ANALYSIS 22

ANNEXURES & DRAWINGS

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H:\rajesh\Market Survey\TTZ\Final\Contents.doc Contents - 2/2 © 2010 MECON Limited. All Rights Reserved

LIST OF ANNEXURES & DRAWINGS

Sl No

Annexure / Drawing No. Description

1. Annexure – I Computer Simulation Output for Pipeline System

2. Annexure – II Bill of Materials

Annexure – III Drawings

A MEC/23LW/05/25/M/001/0001 Typical Layout of City Gate Station

B MEC/23LW/05/25/M/001/0002 Layout of Steel Pipeline and CNG Network in TTZ

C MEC/23LW/05/25/M/001/0003 Process Flow Diagram For CNG Mother Station

D MEC/23LW/05/25/M/001/0004 Typical PNG Distribution System

E MEC/23LW/05/25/M/001/0005 Typical Layout of Pressure Regulating Installation

F MEC/23LW/05/25/M/001/0006 Schematic Diagram for GI System (Domestic)

G MEC/23LW/05/25/M/001/0007 Schematic Diagram for Terminal at large Commercial

CHAPTER – 1

EXECUTIVE SUMMARY

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H:\rajesh\Market Survey\TTZ\Final\Chapter - 01 - Executive Summary.doc 01-1/17 © 2010 MECON Limited. All Rights Reserved

01.00 EXECUTIVE SUMMARY

01.01 Introduction

01.01.01 General

In last few years, the Indian Oil & Gas industry has witnessed some significant changes which have set it on a path of greater competitiveness and efficiency. The biggest milestone has been the formation of Petroleum & Natural Gas Regulatory Board (PNGRB) for regulating the down stream sector. Under present guidelines issued by PNGRB, companies interested in natural gas business serving consumers of various sectors namely, domestic, commercial, industrial and automobile, are now required to bid for various cities and successful bidders will be awarded the rights to serve various segments under laid down terms and conditions. This calls for understanding the natural gas market of cities of interest, assessment of demand of natural gas in all the segments, planning for City Gas Distribution (CGD) network and to assess overall financial viability for the project prior to bidding process. As a part of this exercise, GAIL Gas Limited, Noida, a wholly owned subsidiary of GAIL (India) Limited, has assigned MECON Limited, New Delhi for development of Detailed Feasibility Report (DFR) for setting up City Gas Distribution Network including CNG dispensing facilities in Taj Trapezium Zone.

01.01.02 About Taj Trapezium Zone

Taj Trapezium Zone (TTZ) is a defined area of 10,400 sq km around the Taj Mahal to protect the monument from pollution. The geographical limits of the Taj Trapezium Zone have been defined in the shape of a trapezoid between 27030’N & 77030’E to 27045’N & 77015’E and 26045’N & 77015’E to 27000’N & 78030’E, was notified by the Government of India for intensifying efforts for prevention and control of pollution. The Supreme Court of India delivered a ruling on December 30, 1996 regarding industries covered under the TTZ, in response to a PIL seeking to protect the Taj Mahal from environmental pollution. It banned the use of coal/ coke in industries located in the TTZ with a mandate for switching over from coal/ coke to natural gas, and relocating them outside the TTZ or shutting down. The TTZ comprises over 40 protected monuments including three World Heritage Sites — the Taj Mahal, Agra Fort and Fatehpur Sikri etc. TTZ is so named since it is located around the Taj Mahal and is shaped like a trapezoid

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01.02 Methodology of Study

Following steps have been adopted for DFR preparation. Demand Projections for 25 years provided by GAIL Gas as an input for

preparation of DFR Study of the demand projection report and finalisation of realisable demand

to be considered for distribution Study of location of existing industrial areas, commercial units and

household and Retail Outlets for diesel and petrol all across the TTZ Geographical Study of TTZ from the point of view of CNG and PNG network

development in the specific context of demand potential for the specific areas and their proximity or distance from source pipelines

Limited Reconnaissance Survey during field visit Analysis of collected data, preparation of the network scheme and planning

of CNG & PNG facilities Selection of Pipeline Route and tentative locations of DRSs Preliminary System design and approximate Bill of Materials Capital and Operating cost estimates Financial Appraisal

01.03 Projected Demand

For the purpose of the present DFR, the demand projections for domestic, commercial, automobile and industrial sectors for the TTZ area have been made available by GAIL Gas. The projected demand for TTZ for the four consumer segments namely, Domestic, Industrial, Commercial and Automobile has been worked out for 25 years. Following is the summary of total projected demand for various sectors for TTZ under realistic scenario:

Table - 01.01

PROJECTED DEMAND, in MMSCMD Sector

2nd Year 5th Year 10th

Year

15th

Year 20th

Year 25th

Year

DOMESTIC 0.0036 0.0385 0.0450 0.0532 0.0656 0.0737

COMMERCIAL 0.0004 0.0028 0.0033 0.0036 0.0040 0.0043

INDUSTRIAL 0.4398 4.8062 5.5888 6.0240 6.4931 6.9984

AUTOMOBILE 0.0069 0.0368 0.1868 0.2231 0.2668 0.3266

Total 0.4507 4.8843 5.8239 6.3039 6.8295 7.4030

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The above demand figures are with 2010 as the first year and 2034 as the 25th year, as considered in the market survey and demand projection report.

01.04 System Design

01.04.01 Gas Demand Considered for Distribution

In the case of Domestic and Commercial segments the projected demand is already very conservatively projected therefore the projections have been considered for distribution with only the very far flung locations not having any significant gas requirements being excluded from being considered for distribution. In case of the automobile segment the Market Survey report made available by GAIL Gas indicates a very equitable picture. All the locations in the TTZ irrespective of area and population profile have been projected to be having same CNG demand. This may not be the real picture as every town or city, depending on its population profile and level of economic and commercial activity, will have varying vehicular profile and hence the CNG demand. In light of the above, though total projected demand as indicated in the demand report has been considered for distribution but the locational distribution of total CNG load has been worked out based on the above indicated parameters.

As is discernible from the demand projections table, major share of the projected demand comes from the industrial segment and that too in Firozabad area, having very high density of industrial units. However, the projected demand in the Demand Assessment Report in 5th year (year-2014) has been indicated as 4.8062 MMSCMD which is at variance with the demand estimated by M/s GAIL. For working out realisable demand, the data compiled by M/s GAIL has been used. Based on locations of various industrial units in Firozabad, the total demand has been aggregated in various major locations.

The projection has been made considering annual growth rate of 4.0% for the units located in Industrial Area and other areas lying outskirts of the city. This growth rate includes increase in demand of individual units as well as new upcoming units. In case of units located within the city areas, annual growth rate of 1.5% has been considered. This growth rate mainly takes into account the increase in demand of individual units. Due to congested areas, no new units in these locations have been considered. In case of Bharatpur (CA-16), the projected demand is 0.0129 MMSCMD. Based on interaction with few of the local industrial units at Bharatpur, the demand potential for industries at Bharatpur appears to be much more than the projected demand (0.003

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MMSCMD in 1st year and 0.0129 MMSCMD in 25th year). In view of the above findings during the field visit system design has been worked out keeping a provision of a total gas load of 0.0262 MMSCMD. Further, the industry loads indicated by GAIL Gas for Firozabad region, presently being fed by GAIL’s existing pipeline infrastructure have also not been considered. Based on the above, following sector wise realisable demand have been arrived at and considered for design of system.

Table: 01.02 TOTAL REALISABLE DEMAND, in MMSCMD Sector

2nd 5th 10th 15th 20th 25th

DOMESTIC 0.0030 0.0309 0.0362 0.0426 0.0521 0.0586COMMERCIAL 0.0004 0.0023 0.0027 0.0031 0.0034 0.0037INDUSTRIAL 0.1989 0.8684 1.2780 1.4862 1.7342 2.0301

AUTOMOBILE 0.0070 0.0370 0.1870 0.2230 0.2670 0.3270

Total 0.2092 0.9386 1.5039 1.7549 2.0567 2.4194

The above indicated Realisable Demand (Table-01.02) is the sum total of the realisable demand, considered for distribution, for various consumer segments in TTZ Geographical Area taking 2010 as the first year and 2034 as the terminal or 25th year Based on the realisable demand of 25th year, following sector wise Peak loads have been arrived at and considered for design of Steel Grid Network.

Table: 01.03

Sector 25th Year REALISABLE

DEMAND, in MMSCMD

Peak load (25th Year)

MMSCMD

Domestic 0.0586 0.1758

Commercial 0.0037 0.0074

Industrial 2.0301 2.7068

Automobile 0.3270 0.5886

Total 2.4194 3.4786

The total system collectively has been designed to cater the peak load requirement of 3.4786 MMSCMD of 25th year. The pipeline sizing has been

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done by simulating the total peak load of gas after distributing the requirements in the network.

01.04.02 Source of Gas

TTZ area is already having a couple of major trunk pipelines running right across the GA and also feeding gas to some of the industrial and different bulk consumers of gas. GREP Pipeline of GAIL runs through the western part of the TTZ Geographical area in South - North direction. Another pipeline, a spurline of GREP, runs between Bhajera tap-off to Agra and Firozabad. Gas to be supplied in the TTZ area is envisaged to be taken from these two trunklines. Further, the area of TTZ is large with targeted towns and cities to be supplied with gas, located considerable distance apart with large tracts of uninhabited land in between. For the purpose of optimisation of pipeline network and downstream distribution following five distinct areas have been identified and are envisaged to have five independent sources of gas from these two pipelines. Chhata-Chaumuhan-Vrindavan-Raya-Hathras Area – from SV 10 of GREP Firozabad Area – SV station of Bhajera-Agra-Firozabad pipeline of GAIL Govardhan Area - from SV 9 of GREP Bhajera-Bharatpur Area - from SV 8 of GREP Achhnera-Kiraoli-Fatehpur Sikri Area - SV station of Bhajera-Agra-Firozabad

pipeline nearest to Achhnera

01.04.02 Steel Grid, CNG and PNG facilities

The Steel grid line network has been designed to cater to a pressure of up to 49 kg/cm2, however, the maximum working pressure is considered to be 24 kg/cm2(g) in most part of the network, barring a portion of the Firozabad grid where the pressure is envisaged higher. As mentioned earlier, there shall be five independent CGSs for supplying gas to the various areas in TTZ. These five CGSs shall feed gas to the five pipeline systems which shall be for all practical purposes independent of each other. All these pipeline systems put together, shall traverse a total length of about 142.8 km from the various City Gate Stations. The branches of 4”, 6” & 8” shall be taken from this main grid line up to the CNG stations, industrial units and DRSs as needed. The scheme has been elaborated in the Schematic Drawing attached. The scheme has been developed by optimising the pipeline sizes using engineering design software (refer software generated schematic diagram enclosed at Annexure-Ia & Ib)

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a) Automobile, domestic, commercial and industrial consumers in Taj Trapezium Zone Geographical Area are proposed to be fed from gas transported through the above mentioned grid line network.

b) The laying of major portion of grid line of 10”dia (47.7 km), 8” dia (49

km), 6”dia (0.8 km) and 4” dia (45.3 km) is envisaged to be completed in first two years with approximately 70% being laid in first year. Refer implementation Schedule (Fig-7.01).

c) The total inch Km of pipeline proposed to be laid in first five years (i.e.

the period of exclusivity) is as given below: Table: 01.04

Period Pipe Detail 1st Year 2nd Year 3rd Year

10" x 6.4mm- API 5L Gr X42 (Total- 47,700m)

Chhata-Vrindavan Crossing – 21 km

Firozabad CGS – Arya Nagar - Makhanpur - 26.7 km

33,390 m

(333.9 Inch-KM)

14,310 m

(143.1 Inch-KM)

-

8" x 6.4mm- API 5L Gr B (Total- 49,000m) Vrindavan Crossing – Raya – Hathras – 45 km

Inner By-pass Firozabad - 4 km

34,300 m

(274.4 Inch-km)

14,700 m

(117.6 Inch-km) -

6" x 6.4mm- API 5L Gr B (Total - 800m)

Inner By-pass Firozabad – Jalesar Rd - 0.2 km

Karbala Rd – Suhag Nagar - 0.6 km

800 m

(4.8 Inch-km) -

4" x 6.4mm- API 5L Gr B (Total- 45,300m)

Chhata – Nandgaon/Barsana – 10 km

Achhnera – Kiraoli – Fatehpursikri - 13 km

Bhajer – Bharatpur - 10 km

GREP – Govardhan - 5 km

Misc. Firozabad - 7.3 km

31,710 m

(126.84 Inch-KM)

13,590 m

(54.36 Inch-KM) -

The total Inch-KM of Steel pipeline envisaged to be laid in first five years

i.e. the period of exclusivity is 1065.

d). Two types of CNG Stations, namely mother stations and daughter

booster stations are envisaged, to cater to the CNG demand of automobile sector. Following is the total number of various stations to be installed in 25 years:

Table – 01.05

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No. of installations STATIONS Cap. of compressor

in SCMH Upto 5th

year

Beyond 5th

year

Year of

installation

A ) Mother Stations – Green Field

Firozabad on NH Near CGS

1200 650

1

1 1

1st & 7th 13th

Near Chhata on NH 1200 1 1 1st & 11th

Hathras (on NH )

1200 1 1 1st & 9th

Bharatpur On Agra Highway

1200 650

1 1 1

1st, 13th

10th Raya On Proposed Taj Expressway

1200 1 1 5th & 14th

Vrindavan X-ing (on NH )

1200 - 2 8th & 16th

Achhnera On Bhajera-Agra Highway

1200 650

- 2 1

10th & 18th 9th

Hathras (on NH)

1200 - 2 21st & 22nd

C) Mother Stations (OMC ROs)

Firozabad on NH Near Collectorate

1200 1 1 5th & 20th

Hathras 1200 - 1 10th Firozabad on NH Jalesar Road

1200 1 1 5th & 20th

D) Daughter Booster Stations

26 Nos of DBS 250 20 6 Refer Imp. Sch.

Following total CNG facilities along with associated infrastructure shall be in place by 5th year and beyond:

Table: 01.06

Quantity (Nos.)

Sl.

No.

Facility

By 5th Year from 6th to 15th

Year

from 16th to 25th Year

1. Compressors:

1200 SCMH

650 SCMH

7

-

7

3

7

-

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Quantity (Nos.)

Sl.

No.

Facility

By 5th Year from 6th to 15th

Year

from 16th to 25th Year

250 SCMH 20 6 -

2. Dispensers:

For Bus

For Cars/Auto

12

52

7

19

4

4

3. Cascades:

4500 WL cap.

3000 WL cap.

2200 WL cap.

5

2

20

9

1

6

5

2

-

PNG Network

It is planned to have common PRSs/DRSs (as the case may be) for all domestic and commercial connections and for some of the industrial connections. Considering the large area coverage of the TTZ and the requirement to feed to gas to comparatively much smaller towns and cities, smaller capacity DRSs have been envisaged at multiple locations. In this connection DRSs of 400 SCMH, 600 SCMH, 1250 SCMH and 2500 SCMH capacity have been envisaged.

Table: 01.07

Period District Regulating Stations

400 SCMH 600 SCMH 1250 SCMH 2500 SCMH

1st – 5th Year 3 nos. 7 nos. 3 nos. 2 nos. 6th – 10th Year - - - - 11th – 25th Year - - - - At DRS the pressure reduction shall be done from 14-19 Kg/cm2(g) to 7 Kg/cm2(g) so that gas can flow from High Pressure System (Steel Grid Line) to Low Pressure System (MDPE Network).

It is planned to install MDPE network of following sizes: dia. 180mm, PE 100, SDR 11 dia. 125mm, PE 100, SDR 11 dia. 63mm, PE 100, SDR 11 dia. 32mm, PE 100, SDR 11 dia. 20mm, PE 100, SDR 11

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The Network would begin from DRS and enter up to premises of industrial, domestic and commercial units

01.05 System Description

01.05.01 City Gate Stations

In view of the large area coverage the gas distribution network in the TTZ area has been conceived in a way that the entire network in effect comprises of separate gas supply systems for areas of major gas demand potential. These systems are for all practical purposes independent of each other and have separate gas off-take points as well. In all five nos. of City Gate Stations have been envisaged out of which three nos., the ones for Chhata, Govardhan and Bharatpur are on the GREP pipeline and the other two, for Achhnera and Firozabad lie on the Bhajera-Agra-Firozabad pipeline. So to summarise the above arrangement, CGS near SV 10 of GREP – Gas for Barsana, Nandgaon, Vrindavan, Raya,

Hathras area CGS near SV 9 of GREP - Gas for Govardhan area CGS near SV 8 of GREP - Gas for Bhajera, Bhartpur area CGS near Achnera - Gas for Achnera, Kiraoli, Fatehpur sikri area (Bhajera-Agra-Firozabad P/L)

CGS near Firozabad - Gas for Firozabad area (Bhajer-Agra-Firozabad P/L)

Odourising system shall be provided along with Metering Skids to detect any accidental leakage of gas

01.06.02 Steel Grid Line

The steel grid line has been designed to cater to pressure upto 49 Kg/cm2, as per the recent guidelines of PNGRB.

Sectionalising valves shall be provided to facilitate maintenance of system and to allow for speedy isolation in the event of damage at every 2.0 -3.0 KM distance in city areas and 15 km in cross country areas.

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The Steel Grid Pipeline shall be PE coated in order to ensure long life. The

entire pipeline shall be provided with Permanent Cathodic Protection System. Temporary Cathodic Protection (TCP) shall be provided during construction phase of the proposed line by suitable means.

01.06.03 SCADA System

For entire pipeline & CNG distribution network, dedicated OFC based SCADA system has been recommended. The pipeline and the CNG network shall be monitored and controlled from central SCADA System Control centre using Remote Terminal Units (RTUs) located along the pipeline at suitable locations. For voice and data communication between stations and Master Control Station, dedicated Optical Fibre Cables (OFC)/ Satellite Link/ Leased Line/ GSM/ CDMA Network can be used. This will be implemented based on the criticality and the capacity of the end user. The locations where dedicated OFC network is not considered with pipeline, to meet the voice and data communication requirement of these locations Leased Line/ GSM of other service provider / operators available at city can be used for the limited SCADA (dedicated time polling not a real time polling). Master Control station (MS) is proposed at Firozabad and RTU at each CGS will be provided. All large consumers will be connected with respective RTU of CGS through GSM. The RTU will be connected to MS with existing GAIL telecom network / leased line of other service provider / operators available between each CGS location and Firozabad. This will cater telecom requirements of the pipelines network.

01.06.04 CNG Distribution Network

Following are the main features of the CNG Distribution Network: The compressors to be installed in Mother Station shall be of 1200 SCMH

capacity, whereas Daughter Booster Stations will have 250 SCMH Booster Compressors. The mother compressors shall be gas engine driven at suction pressure 14-19 kg/cm2(g) and discharge pressure 255 kg/cm2(g).

To meet the requirement of emergency power in case of grid power failure,

one DG set of capacity 15 KVA has been envisaged at each Mother Station & On-line Stations.

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There shall be adequate number of Bus, Car/Auto dispensers maintaining a comfortable dispensing capacity to gas demand ratio.

01.06.05 City Gas Distribution System

The City Gas Distribution (MDPE) network shall receive gas from District Regulatory Station (DRS) at a pressure of 7 bar for onward distribution to domestic, commercial and some of the Industrial consumers. The distribution system shall comprise of –

District Regulatory Station (DRS) MDPE pipe network GI / Copper pipe network

01.06.06 District Regulatory Stations (DRS)

It is planned to have DRS for some of the industrial consumers and all domestic and commercial connections. DRS of capacities namely 400, 600, 1250 and 2500 SCMH will be installed in the first five years itself. These DRSs will bring down the pressure from 19 kg/cm2(g) (max) to 7 kg/cm2(g).

01.06.07 MDPE Pipeline Network

For commercial and domestic consumers it is proposed that low pressure (7 kg/cm2(g)) underground network be provided for safety reasons, as it is safe for inhabited areas, easy to lay and economical. Further in case of Industries also PNG shall be supplied through MDPE network. The network shall have 180 mm, 125 mm, 63 mm, 32 mm and 20 mm diameter pipes to form the complete distribution reticulation system.

For domestic connections, each service line shall include a main isolation

valve and a regulator, reducing the pressure to 21 mbar. In case of Commercial Connections, the Meters shall be of two different

categories catering to small and large consumers with output pressure in the range of 300 / 500 mbar to 2 bar

01.07 Implementation Schedule

The overall project comprising the CNG & PNG facilities including laying of main grid and MDPE Network in TTZ is envisaged to be implemented in 25 years in different Phases taking into account year-wise planning of infrastructure

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development in line with growth in demand for CNG and PNG in various segments.

The implementation plan envisages achieving following targets in

first five years that is the period of exclusivity as per PNGRB

guidelines:

The 10”/8”/ 6” dia Steel Pipe Line of length 142.8 Km (1065 Inch-KM). Approx. 63600 nos. of Domestic connections through MDPE Network Infrastructure to provide 0.0023 MMSCMD of PNG to different

commercial consumers located in TTZ area through MDPE Network. Infrastructure to compress and dispense 0.05 MMSCMD of CNG. Infrastructure to provide 0.87 MMSCMD of PNG to different industrial

units located at Firozabad, Hathras, Bharatpur etc.

01.08 Manpower

01.08.01 For Project Implementation

Keeping in view the vast area covered by TTZ Geographical Area, the project work has to be taken up in various locations simultaneously. This will require at least three dedicated teams for Grid line as well as for CNG & City Gas. The organisational set-up for project implementation for the Project shall be headed by a Dy. General Manager (Projects) who shall be assisted by six Managers dedicated for Grid line and CNG & City Gas. They inturn shall be assisted by adequate number of Assistant Managers and staff members having the required skills to look after the distinct functions assigned to them (Refer Figure 8.01), namely, Grid pipeline and associated facilities Contracts & Procurement CNG & City Gas Distribution Administration & Finance Safety Stores

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The total project shall be taken up as comprising following two distinct areas: Grid Pipeline and PNG networks

CNG and associated facilities Hence, there shall be dedicated project implementation teams for these two areas which shall report to Dy. General Manager (Projects). The project implementation group will function under an organisational set-up located at Firozabad. Services of an Engineering & Project Management Consultant and a Third Party Inspection Agency are also envisaged during project implementation period. There shall also be manpower for common areas like contracts & procurement, finance and administration etc

01.08.02 For Operation and Maintenance

The Organisational Set-up for Operation and Maintenance is planned as detailed in Figure 8.02.

The requirement of manpower has been worked out keeping in view the proposed locations of CNG dispensing facilities (Mother Stations/ On-line Stations) and Grid Pipeline at various cities inside TTZ. It is proposed that a unified O & M mechanism headed by a Dy. General Manager and supported by Managers, Assistant Managers for Operation and Maintenance, Safety, Stores and Logistics, Administration & Finance. Further, adequate number of supervisors, Assistants and Attendants would look after Operations & Maintenance of following distinct areas, namely:

Grid Pipeline and PNG networks CNG and associated facilities

The officers upto managerial level shall be from GAIL Gas Ltd. and manpower

requirement from Supervisors and below ranks may be taken on contract basis.

The officers working for project implementation shall subsequently be engaged in overall operations of CNG and PNG distribution facilities.

It is further proposed that the services be out-sourced where ever possible.

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01.09 Capital Cost Estimates:

Capital cost based on the facilities envisaged for steel gridline, online stations and city gas distribution network including charges for domestic, commercial and industrial connections are estimated as Rs. 465.34 crores.

Phasing of capital expenditure before interest during construction for the project as Rs. 43756.3 Lakhs has been worked out on the basis of implementation schedule. The same is shown year-wise and given below.

Table – 01.08 Year 1st 2nd 3rd 4th 5th

Cost in Lakh Rs

15007.8 3858.1 3628.2 3838.1 3045.5

Year 6th 7th 8th 9th 10th

Cost in Lakh Rs

269.9 635.6 1439.8 575.6 2151.7


Cost in Lakh Rs

449.8 575.6 567.6 695.5 419.8


Cost in Lakh Rs

725.5 509.8 935.4 809.6 1122.7

Year 21st 22nd 23rd 24th 25th

Cost in Lakh Rs

913.4 643.9 359.8 389.8 187.9

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01.10 Operating Costs

The annual operating costs for the project at 100% capacity is given below

Annual Operating Cost Table – 01.09

(Rs. in Lakhs)

Sl. No. Item Grid

Line

Online

Station

City gas

Distribution

Total

A. Variable Cost

1. Electric Power 0.00 217.25 0.00 217.25

2. Diesel 0.00 47.51 0.00 47.51

3. Gas for compressors 0.00 815.56 0.00 815.56

4. Consumables 99.35 0.00 0.00 99.35

Sub-Total (A) 99.35 1080.32 0.00 1179.67

B. Fixed Cost

1 Manpower 96.79 152.10 110.62 359.51

2 Overheads 16.00 128.00 128.10 272.00

3 Repair & Maintenance

125.95 631.28 185.35 942.58

4 Insurance 15.11 15.15 22.24 52.50

5. Wet lease for LCV’ s 0.00 234.00 0.00 234.00

6. AMC for compressors

0.00 366.00 0.00 366.00

Sub-Total (B) 253.85 1526.53 446.21 2226.59

Total (A+B) 353.19 2606.85 446.21 3406.26

01.11 Financial Appraisal

The financial analysis of the project has been carried out based on the capital cost and operating cost as elaborated in Chpaters-09 & 10 respectively and the purchase price of the gas delivered at the tap-off and finally to consumers of the gas for the project. Profit & Loss Statement, Cash flow Statement and Balance Sheet have been projected for the project life of 25 years. Following are the salient financial indices for the project:

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Table – 01.10

Sl. No.

Description Unit Amount

1. Compression Charges Rs/ Kg 4.07 2. Transportation Tariff Rs/ MMBTU 27.14 3. Post-tax IRR on Capital employed % 23.6 4. Pre-tax IRR on Capital employed % 27.8 5. Payback period Years 8.8 6. Debt-service coverage ratio Times 2.54 7. Break-even capacity % 26.4 8. Cash break-even capacity % 15.6 9. NPV (post-tax) @10% discount for the project Rs.lakhs 40990.4

The Gas Volume considered for Sale is as follows:

Table: 01.11 (all figures in thousand)

Year

1st 2nd 3rd 4th 5th

Annual gas volume, SCM

(Construction

period)

38161 194109 284025 342398



437849 458255 479906 513303 548704



567349 584214 602288 621117 640392



660646 681756 703743 726704 750446



774867 800777 827019 854042 882714

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01.11.1 Sensitivity Analysis

Sensitivity analysis for the project has been carried out for increase/decrease of capital cost, operating cost, selling price, gas purchase price and gas volume by 5-10%. Sensitivity for these Variants are given below.

Table – 01.10

01.12 Project at a Glance

The summary of the DFR in form of “Project at a Glance” has been presented as Exhibit-1

Sl. No Description IRR on Capital

Employed, (%)

Compression Charges, Rs./Kg

Transportation Tariff, Rs./MMBTU

1 Base Case 23.6 4.07 27.14

2 With increase in Capital cost by 10% 22.2 4.19 29.50

3 With decrease in Capital cost by 10% 25.4 3.95 24.78

4 With increase in Operating cost by 10% 23.3 4.36 27.50

5 With decrease in Operating cost by 10% 23.9 3.78 26.78

6 With increase in Gas volume by 10% 25.6 3.70 24.67

7 With decrease in Gas volume by 10% 21.6 4.52 30.16

8 With increase in gas purchase price by 10% 6.6 4.19 27.14

9 With decrease in gas purchase price by 10% 35.4 3.96 27.14

10 With increase in Sales price by 10% 37.0 4.07 27.14

11 With decrease in Sales price by 5% 15.4 4.07 27.14

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i

Exhibit-1 to Executive Summary

PROJECT AT A GLANCE

1.0 Name of the Project : CGD Network in Taj Trapezium Zone (TTZ)

2.0 Name of the Organisation : GAIL Gas Limited

3.0 Project Location : Taj Trapezium Zone covering various cities of UP and Rajasthan

4.0 Projected Gas Demand (MMSCMD) in realistic scenario:

Sl. No.

Sector 2nd Yr 5th Yr 10th Yr 15th Yr 20th Yr 25th Yr

1. Domestic 0.0036 0.0385 0.0450 0.0532 0.0656 0.0737

2. Commercial 0.0004 0.0028 0.0033 0.0036 0.0040 0.0043

3. Industrial 0.4398 4.8062 5.5888 6.0240 6.4931 6.9984

4. Automobile 0.0069 0.0368 0.1868 0.2231 0.2668 0.3266

Total Demand 0.4505 4.8843 5.8239 6.3039 6.8295 7.4030

5.0 Total Realisable Gas Demand (MMSCMD):

Sl. No.

Sector 2nd Yr 5th Yr 10th Yr 15th Yr 20th Yr 25th Yr

1. Domestic 0.0030 0.0309 0.0362 0.0426 0.0521 0.0586

2. Commercial 0.0004 0.0023 0.0027 0.0031 0.0034 0.0037

3. Industrial 0.1989 0.8684 1.2780 1.4862 1.7342 2.0301

4. Automobile 0.0070 0.0370 0.1870 0.2230 0.2670 0.3270

Total Demand 0.2092 0.9386 1.5039 6.3039 2.0567 2.4194

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ii

6.0 Peak (Hour/Day) Projected Gas Demand sector wise in 25th year:

SCMH MMSCMD

Domestic : 481 0.1758

Commercial : 20 0.0074

Industrial : 7416 2.7068

Automobile : 1613 0.5886

Total : 9530 3.4786

7.0 Tap-Off Point : 1. SV 10 at GREP pipeline

2. Existing CGS at Ferozabad

3. SV 9 at GREP pipeline

4. SV 8 at GREP pipeline

5. SV near Achhnera

8.0 Project Facilities

CGS

:

At Chhata, Ferozabad, Govardhan, Bharatpur and Achhnera (5 locations)

Steel Grid : 142.8 Kms

Total inch-km in 5 years : 1065 inch Km

CNG Stations : 11 nos.

Daughter Booster : 26 nos.

DRS : 15 nos.

MDPE Grid : 1858.2 km

9.0 Man Power Requirement for Operation

: 17 (nos.) permanent and 35 (nos.) on contract

10.0 Project Time Schedule (Years) : 25

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iii

11.0 Debt: Equity Ratio : 60 : 40

12.0 Cost of Gas at CGS (Rs. / Sm3) :

- For Domestic and Automobile sectors

: Rs. 12.25/ Sm3 (Base price - $ 4.21/ MMBtu)

- For Commercial and Industrial sectors

: Rs. 18.00/ Sm3(Base price - $ 5.80/ MMBtu)

13.0 Project Capital Cost (Rs. Crore) : 465.34

14.0 Net Selling Price of Gas (Rs./Sm3)

Domestic Sector : 18.00

Commercial Sector : 23.00

Industrial Sector : 20.00

Automotive Sector : 23.00

15.0 FINANCIAL RESULTS :

i) Post tax IRR on capital employed : 23.6 %

ii) Pre tax IRR on capital employed : 27.8 %

iii) Payback Period : 8.8 yrs

iv) Debt Service Coverage Ratio (DSCR)

: 2.54

v) Break- even capacity : 26.4%

vi) Cash Break- even capacity : 15.6 %

vi) Compression charges at 10% discount rate

: Rs. 4.07 / Kg

vii) Transportation tariff at 10% discount rate

: Rs. 27.14 / MMBTU

CHAPTER – 2

INTRODUCTION

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H:\rajesh\Market Survey\TTZ\Final\Chapter - 02 - Introduction.doc 02-1/6 © 2010 MECON Limited. All Rights Reserved

02 INTRODUCTION

02.01 General Over the last century there has been a perceptible shift of focus from coal to oil and now natural gas and this has resulted in Natural Gas becoming a vital component of the world's supply of energy these days. It is one of the cleanest, safest, and most useful of all fossil fuels. It is increasingly finding acceptance as the preferred fuel for the industry, automobiles and households alike the world over.

India’s energy consumption basket continues to be dominated by coal and oil. Coal has the largest share in consumption energy matrix with a share of 53.4% followed by oil at 31.2 %, natural gas at 8.6 %, hydro 6.0% and nuclear at 0.8%. With India on the verge of joining nuclear club, this matrix is set to witness changes. As far as Natural gas is concerned, though it still accounts for a small portion of India’s energy consumption basket, it is beginning to be reckoned as a significant energy source. In India, ONGC is the major producer (68% of production) and GAIL is the monopoly player in transmission and distribution of natural gas, accounting for about 80% of the supplies. Power and fertilizers together contribute nearly 70% of the demand for natural gas. In spite of huge discoveries made by Reliance in KG Basin, the demand growth is still likely to out perform the supply growth. As per an estimate, the Natural Gas demand is growing and is forecast to rise to 313 MMSCMD by 2012 and 391 MMSCMD by 2020.

In line with the new Gas Pipeline policy of Govt. of India and the PNGRB Act 2006, PNGRB has formulated and got notified a number of regulations for downstream oil & Gas sector. In line with the new regulatory requirements of tariff based bidding for grant of authorisation, a number of entities have come out with Expressions of Interest (EOI) to set up CGD (City Gas Distribution). For some of the cities even formal bidding process has also commenced. In India presently, GAIL (India) Limited is primarily responsible for transportation and marketing of natural gas. Set up in 1984 it owns around 7100 km of pipeline having a capacity of 155 MMSCMD and that includes 2300 km long HBJ pipeline that has a capacity of 60 MMSCMD. The same is proposed to be increased to over 12000 km and 300 MMSCMD by the year 2012. OIL, GSPC and Reliance Industries Limited are some of the other players in the natural gas business having their own production wells. The integrated oil companies like IOC, HPCL, BPCL, also have a presence in the natural gas business apart from their prime business of refining of crude and marketing of petroleum fuels.

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GAIL (India) Limited has formed joint ventures with some of the oil companies for distribution of natural gas in selected cities in the state of Andhra Pradesh, Maharastra, Madhya Pradesh, Uttar Pradesh, Delhi etc.

02.02 Background

With increasing impetus coming in the form of environmental concerns leading to various court directives, City Gas Projects have become a new thrust area of natural gas business. The low cost in comparison to other crude oil based fuels including LPG and environmental friendly characteristics have made natural gas business more attractive. The entry of private players like Adani, Reliance, GEECL (with Coal Bed Methane) in natural gas business along with Public Sector Companies like IOCL, BPCL, HPCL and joint venture companies like IGL, MGL, TNGCL, GGL, BGL, AGL etc. fuelled with new discoveries of Natural Gas in India and formation of Petroleum & Natural Gas Regulatory Board (PNGRB) by the government is going to totally transform this Industry. GAIL Gas Limited, Noida, a Wholly Owned Subsidiary of GAIL (India) Limited, has assigned MECON Limited, New Delhi for development of Detailed Feasibility Report (DFR) for setting up CNG dispensing and City Gas Distribution Network in Taj Trapezium Zone (TTZ) covering certain districts of Uttar Pradesh and Rajasthan.

02.03 About Taj Trapezium Zone (TTZ)

Taj Trapezium Zone (TTZ) is a defined area of 10,400 sq km around the Taj Mahal to protect the monument from pollution. The geographical limits of the Taj Trapezium Zone have been defined in the shape of a trapezoid between 27030’N & 77030’E to 27045’N & 77015’E and 26045’N & 77015’E to 27000’N & 78030’E, was notified by the Government of India for intensifying efforts for prevention and control of pollution. The Supreme Court of India delivered a ruling on December 30, 1996 regarding industries covered under the TTZ, in response to a PIL seeking to protect the Taj Mahal from environmental pollution. It banned the use of coal/ coke in

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industries located in the TTZ with a mandate for switching over from coal/ coke to natural gas, and relocating them outside the TTZ or shutting down. The TTZ comprises over 40 protected monuments including three World Heritage Sites — the Taj Mahal, Agra Fort and Fatehpur Sikri. TTZ is so named since it is located around the Taj Mahal and is shaped like a trapezoid.

Under present study, the Geographical Area (GA) covers entire TTZ except Agra and Mathura with total area of about 9513 Sq Km. The Geographical Area covered under present study comprises of following 23 Charge Areas: CA-01 Firozabad CA-13 Gowardhan CA-02 Farha CA-14 Kumher CA-03 Awagarh CA-15 Achnera CA-04 Jalesar CA-16 Bharatpur CA-05 Sahpau CA-17 Rupbas CA-06 Sadabad CA-18 Bayana CA-07 Hathras, Mursan CA-19 Jagner

CA-08 Baldeo CA-20 Kheragarh CA-09 Raya CA-21 Fatehpur-sikri CA-10 Vrundavan CA-22 Kiraoli CA-11 Barsana CA-12 Nandagaon

CA-23 Shamsabad

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The aim of the present feasibility study is to develop CNG and City Gas Distribution network covering various Charge Areas (CAs) to cater demand for natural gas in Industrial, Commercial, Domestic and Automobile segments. Presently the natural gas demand of Industrial Sector of Firozabad (CA-1) is being catered by M/s GAIL. M/s GAIL have established a vast pipeline network in Firozabad for this purpose. The existing Pipeline network in Firozabad, GREP and Agra Bajera Pipe Lines of M/s GAIL shall be taken as the source of Natural Gas supply to various Charge Areas covered under the Geographical Area.

02.04 Scope of Work for DFR

The major scope of DFR comprises the following:

1) Selection of route for the Main Grid Line

Reccee survey of various prominent Charge Areas is to identify suitable locations for City Gate Stations (CGS), CNG Stations and to select route for the basic main grid line taking into account the locations of Industrial areas and potential consumers in other segments.

2) System Design

Design philosophy is to ensure optimisation of the complete CNG and City Gas Distribution System along with finalisation of operating parameters. System design has been based on the latest standards and guidelines for City Gas distribution as notified by PNGRB.

3) Design of Grid Network

This includes design of grid network, identification of nodes/ District Regulating Stations (DRS), City Gate Station (CGS) and metering skids at Tap-off Points with all safety provisions, PSVs, SVs, Cathodic Protection and SCADA facility. The sizing of pipeline network including CNG dispensing facilities through adequate number of Mother Stations, On-line Stations and Daughter Station facility alongwith operation and maintenance requirements in line with various relevant national and international standards/codes and regulations.

4) Develop project implementation schedule

This involves development of Project implementation schedule to meet the growth in demand upto 25 years and construction capabilities /

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bottlenecks with reference to the facilities and the local conditions in phased manner.

5) Man power Planning

Man power planning by way of preparing organizational structure for implementation and operation & maintenance of the project.

6) Estimation of Capital Cost & Operating Cost

This involves preparation of realistic capital and operating costs of main grid pipeline, City Gate Station (CGS) including Metering Skids, CNG dispensing facilities, City Gas Distribution etc. based on the Bill of Material for the facilities planned and the rates for different items as prevailing during the period.

7) Financial analysis

The financial analysis would include working out the Profit & Loss Account, Cash Flow Statement, Estimated Balance Sheet, Network Tariff Calculation etc. as per various Formats provided by PNGRB.

02.05 Contents of the Report

The Report outlines the demand projections based on Demand Assessment Report provided M/s GAIL Gas Limited, route finalization, process considerations, basic design and optimum facilities required to transport gas from City Gate Station (CGS) point to different potential consumers in the city. The Report also delves into execution plan, organizational structure for running the facilities, capital cost, operation & maintenance costs and financial analysis.

The DFR contains information under following chapters to meet the requirement of the work order.

Executive Summary Introduction Methodology of Study Demand Projections System Design System Description

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Implementation Schedule Organisation Structure & Manpower Planning Capital Cost Estimate Operating Cost Estimate Financial Analysis

02.06 Visits and Data Collection

Study of the Demand Assessment Report provided by M/s GAIL Gas Limited was carried out to develop an understanding of the overall demand potential in the Geographical Area. Apart from this study, MECON team visited various prominent charge Areas and conducted Reccee survey for grid pipeline route and to locate suitable sites for City Gate Station (CGS), DRS, CNG Dispensing facilities etc.

02.07 Acknowledgement

MECON thankfully acknowledges the help and cooperation extended by officers at GAIL, Agra and concerned officials of GAIL Gas Limited, Noida in preparation of this report.

CHAPTER – 3

METHODOLOGY OF STUDY

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H:\rajesh\Market Survey\TTZ\Final\Chapter - 03 - Methodology.doc 03-1/3 © 2010 MECON Limited. All Rights Reserved

03.00 METHODOLOGY OF STUDY

03.01 Introduction

The facilities envisaged under the Project broadly comprise: Piped Natural Gas Infrastructure in the Geographical Area covered under

TTZ. Development of CNG facilities and its integration with proposed Piped

Natural Gas Infrastructure The said facilities, as detailed in the Chapter on System Design and System Description, have been planned based on projected natural gas demand for 25 years. The demand projections for various segments have been arrived at through a dedicated market survey got conducted by M/s GAIL Gas Limited through a market survey agency. The proposed network and route selection has been based on demand assessment, field visits, inputs from M/s GAIL & M/s GAIL Gas Ltd. and other secondary data.

03.02 Demand Projection

The demand projections for next 25 years (from 2010-34) for domestic, commercial, automobile and industrial sectors in the Geographical Area covered under TTZ, have been made by a specialised market survey agency appointed by M/s GAIL Gas Ltd. The project demand for various segments from 2010-34 has been taken as basis with some modifications based on feed back received from M/s GAIL and M/s GAIL Gas particularly in case of industrial demand for Firozabad (CA-1) and at other places wherever felt necessary. The Demand Assessment Report submitted by the market survey agency shall be an integral part of the present DFR.

03.03 Maps Used For Study & Important Source of Secondary Data

The following maps were studied for the optimum route selection: a) City map including Gas Grid map of M/s GAIL for Firozabad b) Map showing Geographical Area alongwith various Charge Areas

covered under TTZ as provided by M/s GAIL Gas

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03.04 Route Selection Criteria for the Gas Grid

For selecting the Gas Grid for different Charge Areas, route study was carried out keeping the following factors into account: Location of GAIL’s existing Natural Gas Pipelines Locations of existing Retail Outlets of Oil Companies Minimum rail, major road and river/ major canal crossings. Availability of space for right-of-use. Locations of future expansion of city Least contour variations. Avoiding HT transmission lines. Minimum number of turning points. Easy access to the route during construction phase. Availability of infrastructure facility e.g. land, electric power, water, etc.,

for SV stations, CNG stations and DRS. 03.05 Selection of CNG - Mother, On-line and Daughter Booster Stations

The selection criteria for location of CNG stations in the city is based on the following: i) Suitability for catering CNG requirements of Buses through dedicated

CNG stations. ii) Location of population centres in the city iii) Should cover major routes of heavy traffic movement iv) Availability of sufficient area at existing petrol/diesel retail outlets. v) Stations locations should provide an optimum spread of CNG network in

the city vi) State and National Highways with heavy traffic of inter-state vehicular

movement 03.06 Selection of Sectionalizing Valve (SV) Stations

The criteria for selection of locations of SV stations is based on the following: i) Primary consideration shall be given to locations that provide continuous

accessibility to valves

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ii) The distance between two successive stations in case of the Grid within cities shall be about 3.0 km.

iii) Conservation of gas iv) Time to blow down the isolated section v) Continuity of gas service vi) Operational flexibility vii) Expected future expansion between two sectionalizing valves viii) Ease & flexibility in operation and security of the line ix) Availability of a plot of minimum size 3m x 5m

Depending on the local site conditions the spacing between SV stations may be adjusted to permit installation of SV station in a more accessible location depending upon the availability of land during project execution.

03.07 Selection of District Regulatory Stations (DRSs)

In the current scheme of things DRSs of various capacities like 400, 600, 1250

and 2500 SCMH capacity has been envisaged. The selection criteria for DRS location is based on the following:

i) Proximity to areas having a high concentration of large and medium

commercials and industrial units ii) Proximity to those residential areas of the city where likelihood of

conversion is high.

iii) Locations shall be such that there is possibility of forming closed loops of the MDPE network.

iv) Easy and convenient accessibility

CHAPTER – 4

DEMAND PROJECTION

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H:\rajesh\Market Survey\TTZ\Final\Chapter - 04 - Demand.doc 04-1/7 © 2010 MECON Limited. All Rights Reserved

04.00 DEMAND PROJECTION

04.01 General

For the purpose of the present DFR, the demand projections for domestic, commercial, automobile and industrial sectors in the Geographical Area covered under TTZ have been made based on market survey conducted through a specialised market survey agency appointed by M/s GAIL Gas Limited. The demand assessment report provides demand projections up to 25th year beginning from the year 2010. The 1st year has been taken as the year for creating the infrastructure for the project. The projected demand has been worked out in three scenarios namely, optimistic, pessimistic and realistic. The realistic demand has been considered for further working out total realisable demand which has formed the basis for development of infrastructure and system design.

04.02 Projected Demand

The projected demand for the Geographical Area for the four consumer segments namely, Domestic, Industrial, Commercial and Automobile has been projected for 25 years. Domestic Demand for PNG:

The demand for domestic segment has been worked out by market survey agency for all Charge Areas. The demand projected under realistic scenario has been considered for development of gas distribution infrastructure. Following is the summary of projected demand for domestic sector pertaining to different Charge Areas:

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Commercial Demand for PNG:

Following is the summary of projected demand for commercial sector which mainly includes hotels, hostels, restaurants, food joints, hospitals etc pertaining to different Charge Areas:

Charge

Area Charge Area

Year

(Demand in MMSCMD)

2011 2014 2019 2024 2029 2034

CA-01 FIROZABAD 0.0012 0.0124 0.0146 0.0173 0.0214 0.024CA-02 FARHA 0 0.0003 0.0003 0.0004 0.0006 0.0007CA-03 AWAGARG 0 0.0003 0.0003 0.0004 0.0005 0.0005CA-04 JALESAR 0.0001 0.0008 0.0009 0.0011 0.0014 0.0016CA-05 SAHPAU 0 0.0001 0.0001 0.0001 0.0002 0.0002CA-06 SADABAD 0.0001 0.0007 0.0008 0.001 0.0013 0.0014CA-07 HATHRAS 0.0005 0.0047 0.0055 0.0065 0.0078 0.0088CA-08 BALDEO 0 0.0002 0.0003 0.0005 0.0007 0.0008CA-09 RAYA 0 0.0004 0.0004 0.0005 0.0007 0.0008CA-10 VRUNDAVAN 0.0002 0.0023 0.0027 0.0031 0.0037 0.0042CA-11 BARSANA 0 0.0002 0.0002 0.0002 0.0003 0.0004CA-12 NANDGAON 0.0001 0.0009 0.0011 0.0013 0.0017 0.0019CA-13 GOWARDHAN 0.0001 0.0006 0.0007 0.0009 0.0011 0.0012CA-14 KUMHER 0.0001 0.0015 0.0018 0.0021 0.0027 0.003CA-15 ACHNERA 0.0001 0.0006 0.0007 0.0009 0.0012 0.0013CA-16 BHARATPUR 0.0008 0.0081 0.0094 0.0108 0.0128 0.0144CA-17 RUPBAS 0 0 0 0 0 0CA-18 BAYANA 0.0001 0.0013 0.0015 0.0017 0.002 0.0023CA-19 JAGNER 0 0.0001 0.0001 0.0002 0.0002 0.0003

CA-20 KHERAGARH 0.0002 0.0016 0.0019 0.0021 0.0025 0.0028

CA-21 FATEHPUR-SIKRI 0 0.0005 0.0006 0.0007 0.0009 0.001

CA-22 KIRAOLI 0 0.0002 0.0003 0.0004 0.0005 0.0006

CA-23 SHAMSABAD 0 0.0007 0.0008 0.001 0.0014 0.0015

TOTAL 0.0036 0.0385 0.045 0.0532 0.0656 0.0737

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Charge

Area Charge Area

Year

(Demand in MMSCMD)

2011 2014 2019 2024 2029 2034CA-01 FIROZABAD 0.00005 0.0002 0.0002 0.0002 0.0003 0.0003CA-02 FARHA 0 0.0001 0.0001 0.0001 0.0001 0.0001CA-03 AWAGARG 0 0 0 0 0.0001 0.0001CA-04 JALESAR 0 0 0 0 0 0CA-05 SAHPAU 0 0 0 0 0 0CA-06 SADABAD 0.00005 0.0002 0.0003 0.0003 0.0003 0.0004CA-07 HATHRAS 0.00005 0.0002 0.0002 0.0002 0.0003 0.0003CA-08 BALDEO 0 0 0 0 0 0CA-09 RAYA 0 0.0001 0.0001 0.0001 0.0001 0.0001CA-10 VRUNDAVAN 0.00006 0.0003 0.0004 0.0004 0.0005 0.0005CA-11 BARSANA 0 0.0001 0.0001 0.0001 0.0001 0.0001CA-12 NANDGAON 0 0.0001 0.0001 0.0001 0.0001 0.0001CA-13 GOWARDHAN 0 0.0001 0.0001 0.0002 0.0002 0.0002CA-14 KUMHER 0 0 0 0 0 0CA-15 ACHNERA 0.00004 0.0001 0.0002 0.0002 0.0002 0.0002CA-16 BHARATPUR 0.00014 0.0006 0.0007 0.0008 0.0008 0.0009CA-17 RUPBAS 0 0.0001 0.0001 0.0001 0.0001 0.0001CA-18 BAYANA 0 0.0001 0.0001 0.0001 0.0001 0.0001CA-19 JAGNER 0 0.0001 0.0001 0.0001 0.0001 0.0001CA-20 KHERAGARH 0 0.0001 0.0001 0.0001 0.0001 0.0001

CA-21 FATEHPUR-SIKRI 0 0.0001 0.0001 0.0001 0.0001 0.0002

CA-22 KIRAOLI 0 0.0001 0.0001 0.0002 0.0002 0.0002CA-23 SHAMSABAD 0 0.0001 0.0002 0.0002 0.0002 0.0002

TOTAL 0.00039 0.0028 0.0033 0.0036 0.004 0.0043

Industrial Demand for PNG:

The Demand Assessment Report indicates demand for Industrial segment in following 7 Charge Areas only. In rest of the Charge Areas the industrial demand has been worked out as Nil.

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Charge

Area Charge Area

Year

(Demand in MMSCMD)

2011 2014 2019 2024 2029 2034CA-01 FIROZABAD 0.4394 4.8043 5.5757 6.0097 6.4776 6.9818CA-02 FARHA 0 0 0 0 0 0CA-03 AWAGARG 0 0 0 0 0 0CA-04 JALESAR 0 0 0 0 0 0CA-05 SAHPAU 0 0 0 0 0 0CA-06 SADABAD 0 0 0 0 0.0001 0.0001CA-07 HATHRAS 0.0001 0.0006 0.0025 0.0027 0.0029 0.0031CA-08 BALDEO 0 0 0 0 0 0CA-09 RAYA 0 0 0 0 0 0CA-10 VRUNDAVAN 0 0 0 0 0 0CA-11 BARSANA 0 0 0 0 0 0CA-12 NANDGAON 0 0 0 0 0 0CA-13 GOWARDHAN 0 0 0 0 0 0CA-14 KUMHER 0 0 0 0 0 0CA-15 ACHNERA 0 0 0 0 0 0CA-16 BHARATPUR 0.0003 0.0013 0.0103 0.0111 0.012 0.0129CA-17 RUPBAS 0 0 0 0 0 0CA-18 BAYANA 0 0 0.0002 0.0002 0.0002 0.0002CA-19 JAGNER 0 0 0 0 0 0CA-20 KHERAGARH 0 0 0.0001 0.0001 0.0001 0.0001

CA-21 FATEHPUR-SIKRI 0 0 0 0 0 0

CA-22 KIRAOLI 0 0 0 0 0 0CA-23 SHAMSABAD 0 0 0 0.0002 0.0002 0.0002

TOTAL 0.4398 4.8062 5.5888 6.024 6.4931 6.9984

Automobile Sector Demand for CNG:

The demand for CNG in automobile sector is generated by cars, auto rickshaws, buses and taxies. The demand for CNG has been projected evenly for all Charge Areas as (0.003 MMSCMD in 1st year and 0.0142 MMSCMD in 25th year). Following are the Charge Area wise demand figures for the sector:

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Year (Demand in MMSCMD)

Charge Area

Charge Area

2011 2014 2019 2024 2029 2034

CA-01 FIROZABAD 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-02 FARHA 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-03 AWAGARG 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-04 JALESAR 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-05 SAHPAU 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-06 SADABAD 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-07 HATHRAS 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-08 BALDEO 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-09 RAYA 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-10 VRUNDAVAN 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-11 BARSANA 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-12 NANDGAON 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-13 GOWARDHAN 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-14 KUMHER 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-15 ACHNERA 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-16 BHARATPUR 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-17 RUPBAS 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-18 BAYANA 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-19 JAGNER 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-20 KHERAGARH 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-21 FATEHPUR-SIKRI 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

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Charge Area

Charge Area

2011 2014 2019 2024 2029 2034

CA-22 KIRAOLI 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

CA-23 SHAMSABAD 0.0003 0.0016 0.00812 0.0097 0.0116 0.0142

TOTAL 0.0069 0.0368 0.18676 0.2231 0.2668 0.3266

Considering sizes of different Charge Areas and their population etc. this even projection of CNG demand is certainly not realistic. The CNG demand for Charge Areas like Firozabad, Bharatpur etc. can not be same as those of places like Jalesar, Baldeo, Kumher etc. where even commercial demand has been projected as nil. In absence of reliable data in the Demand Assessment Report pertaining to CNG demand, the data has been modified based on MECON’s assessment for deciding number of CNG Stations. The CNG run vehicles coming from nearby places like Delhi and other parts of NCR etc. particularly to tourist places like Fatehpur Sikri, Vrindavan,Goverdhan, Bharatpur etc. has been taken into account.

Following is the summary of total projected demand for various sectors: Year

(Demand in MMSCMD) Charge

Area Charge Area

2011 2014 2019 2024 2029 2034

CA-01 FIROZABAD 0.44095 4.8185 5.59862 6.0369 6.5109 7.0203

CA-02 FARHA 0.0003 0.002 0.00852 0.0102 0.0123 0.015

CA-03 AWAGARG 0.0003 0.0019 0.00842 0.0101 0.0122 0.0148

CA-04 JALESAR 0.0004 0.0024 0.00902 0.0108 0.013 0.0158

CA-05 SAHPAU 0.0003 0.0017 0.00822 0.0098 0.0118 0.0144

CA-06 SADABAD 0.00045 0.0025 0.00922 0.011 0.0133 0.0161

CA-07 HATHRAS 0.00095 0.0071 0.01632 0.0191 0.0226 0.0264

CA-08 BALDEO 0.0003 0.0018 0.00842 0.0102 0.0123 0.015

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Charge Area

Charge Area

2011 2014 2019 2024 2029 2034

CA-09 RAYA 0.0003 0.0021 0.00862 0.0103 0.0124 0.0151

CA-10 VRUNDAVAN 0.00056 0.0042 0.01122 0.0132 0.0158 0.0189

CA-11 BARSANA 0.0003 0.0019 0.00842 0.01 0.012 0.0147

CA-12 NANDGAON 0.0004 0.0026 0.00932 0.0111 0.0134 0.0162

CA-13 GOWARDHAN 0.0004 0.0023 0.00892 0.0108 0.0129 0.0156

CA-14 KUMHER 0.0004 0.0031 0.00992 0.0118 0.0143 0.0172

CA-15 ACHNERA 0.00044 0.0023 0.00902 0.0108 0.013 0.0157

CA-16 BHARATPUR 0.00154 0.0116 0.02852 0.0324 0.0372 0.0424

CA-17 RUPBAS 0.0003 0.0017 0.00822 0.0098 0.0117 0.0143

CA-18 BAYANA 0.0004 0.003 0.00992 0.0117 0.0139 0.0168

CA-19 JAGNER 0.0003 0.0018 0.00832 0.01 0.0119 0.0146

CA-20 KHERAGARH 0.0005 0.0033 0.01022 0.012 0.0143 0.0172

CA-21 FATEHPUR-SIKRI 0.0003 0.0022 0.00882 0.0105 0.0126 0.0154

CA-22 KIRAOLI 0.0003 0.0019 0.00852 0.0103 0.0123 0.015

CA-23 SHAMSABAD 0.0003 0.0024 0.00912 0.0111 0.0134 0.0161

TOTAL 0.45069 4.8843 5.82386 6.3039 6.8295 7.403

CHAPTER – 5

SYSTEM DESIGN

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H:\rajesh\Market Survey\TTZ\Final\Chapter - 05 - System Design.doc 05-1/17 © 2010 MECON Limited. All Rights Reserved

05.00 SYSTEM DESIGN

05.01 General

This chapter covers the design philosophy, input parameters, basic design and standards for the total CNG & PNG distribution system envisaged for Taj Trapezium Zone Geographical Area.

05.02 Demand Pattern

05.02.01 Projected Demand

The demand projections are as per the market survey and demand assessment study got conducted by GAIL Gas for the complete geographical area and the demand report of the same made available to MECON for preparation of DFR. The projections in the said demand report have been made for a period of 25 years taking 2010 as Zero year for four consumer segments namely, domestic, commercial, automobile and industrial. The total projected demand for various segments during 2nd, 5th, 10th, 15th, 20th and 25th year has been indicated in Table - 05.01 (refer chapter-4.0 for details):

Table - 05.01

PROJECTED DEMAND, in MMSCMD Sector

2nd Year 5th Year 10th

Year

15th

Year 20th

Year 25th

Year

DOMESTIC 0.0036 0.0385 0.0450 0.0532 0.0656 0.0737

COMMERCIAL 0.0004 0.0028 0.0033 0.0036 0.0040 0.0043

INDUSTRIAL 0.4398 4.8062 5.5888 6.0240 6.4931 6.9984

AUTOMOBILE 0.0069 0.0368 0.1868 0.2231 0.2668 0.3266

Total 0.4505 4.8843 5.8239 6.3039 6.8295 7.403

The above are with 2010 as the first year and 2034 as the 25th year, as considered in the market survey and demand projection report.

05.02.02 Realisable Demand The Projected gas demand as per the market survey may not be achievable in totality due to several factors viz; implementation difficulties, socio-economic

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factors etc. Thus the demand is reanalysed to obtain a demand which can actually be realised on implementation of the proposed Grid Network. The projected demand figures of 25th year are normally further analysed for determining the Realisable Demand in some of the segments. As the entire Realisable demand projection for 25 years is considered in designing the Grid, no excess carrying capacity is further considered. In the case of Domestic and Commercial segments the projected demand is already very conservatively projected therefore the projections have been considered for distribution with only the very far flung locations not having any significant gas requirements being excluded from being considered for distribution. In case of the automobile segment the Market Survey report made available by GAIL Gas indicates a very equitable picture. All the locations in the TTZ irrespective of area and population profile have been projected to be having same CNG demand. This may not be the real picture as every town or city, depending its population profile and level of economic and commercial activity, will have varying vehicular profile and hence the CNG demand. In light of the above, though total projected demand as indicated in the demand report has been considered for distribution but the locational distribution of total CNG load has been worked out based on the above indicated parameters.

As is discernible from the demand projections table, major share of the projected demand comes from the industrial segment and that too in Firozabad area, having very high density of industrial units. However, the projected demand in the Demand Assessment Report in 5th year (year-2015) has been indicated as 4.9495 MMSCMD which is at variance with the demand estimated by M/s GAIL. For working out realisable demand, the data compiled by M/s GAIL has been used. Based on locations of various industrial units in Firozabad, The total demand has been aggregated in various major locations as mentioned below:

Raja Ka Taal Dholpura Industrial Estate Rehana Road Karbala Nagar Labour colony Saraswati Nagar Makkhanpur Agra Gate

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Kotla Road Asfabad

The projection has been made considering annual growth rate of 4.0% for the units located in Industrial Area and other areas lying outskirts of the city. This growth rate includes increase in demand of individual units as well as new upcoming units. In case of units located within the city areas, annual growth rate of 1.5% has been considered. This growth rate mainly takes into account the increase in demand of individual units. Due to congested areas, no new units in these locations have been considered. In case of Bharatpur (CA-16), the projected demand is 0.0129 MMSCMD. Based on interaction with few of the local industrial units at Bharatpur, the demand potential for industries at Bharatpur appears to be much more than the projected demand (0.003 MMSCMD in 1st year and 0.0129 MMSCMD in 25th year). In view of the above findings during the field visit system design has been worked out keeping a provision of a total gas load of 0.0262 MMSCMD. Further, the industry loads indicated by GAIL Gas for Firozabad region, presently being fed by GAIL’s existing pipeline infrastructure have also not been considered. Based on the above, following sector wise realisable demand have been arrived at and considered for design of system.

Table: 05.02 TOTAL REALISABLE DEMAND, in MMSCMD Sector

2nd 5th 10th 15th 20th 25th

DOMESTIC 0.0030 0.0309 0.0362 0.0426 0.0521 0.0586COMMERCIAL 0.0004 0.0023 0.0027 0.0031 0.0034 0.0037INDUSTRIAL 0.1989 0.8684 1.2780 1.4862 1.7342 2.0301

AUTOMOBILE 0.0070 0.0370 0.1870 0.2230 0.2670 0.3270

Total 0.2092 0.9386 1.5039 1.7549 2.0567 2.4194

The above indicated Realisable Demand (Table-05.02) is the sum total of the realisable demand, considered for distribution, for various consumer segments in TTZ Geographical Area taking 2010 as the first year and 2034 as the terminal or 25th year.

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05.03 Design Philosophy

The total philosophy for the system design has been worked out keeping in view

the availability of sufficient gas in the CGSs envisaged for the entire area alongwith:

immediate and long term business interests of GAIL Gas

the overall economics of the available options considering the large

expanse of the Geographical Area

Minimising dead length of the pipeline, some amount of which would as such be inevitable considering the nearly 10,000 Sq Km area of TTZ Geographical Area

It has been envisaged that more emphasis shall be given to utilising the existing Retail outlets for CNG dispensing as the demand has already been built up in these stations. The domestic sector has also been given priority while designing the system. The augmentation of infrastructure for CNG & PNG distribution has been planned in a phased manner as the demand builds up in subsequent years. This would ensure capital investment in phased manner resulting into overall economy of the project. As the area to be covered is quite big with many locations to be reached, the philosophy adopted for CNG system design is to have centralised CNG compression facilities at few locations and the other locations comparatively farther away from the steel network to be fed with Daughter Booster Stations. The compression capacity requirements for these locations shall be loaded onto the CNG Mother stations planned along the steel network. The above is aimed at optimising the steel pipeline network yet have a good geographical spread and area coverage of CNG availability As per the new regulations of PNGRB, network tariff charges and compression charges are to be worked out for economic life of the project i.e. 25 years. Accordingly, following has been taken into account while carrying out overall system design: The network has been conceived to be able to cater to the peak load

realisable demand for 25th year. This shall avoid the trouble of laying another line on the same route after the exclusivity period.

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The CNG dispensing facilities have been proposed to be installed in a staggered manner commensurate with the projected realisable demand for relevant years.

Similarly for the domestic, commercial and industrial sectors, the

installation of MDPE pipelines etc., have been planned in stages.

05.04 Source of Gas

As already stated earlier, TTZ area is already having a couple of major trunk pipelines running right across the GA and also feeding gas to some of the industrial and different bulk consumers of gas. It has also been mentioned earlier that natural gas is already being supplied to industrial consumers in Firozabad area. GREP Pipeline of GAIL runs through the western part of the TTZ Geographical area in South - North direction. Another pipeline, a spurline of GREP, runs between Bhajera tap-off to Agra and Firozabad. Gas to be supplied in the TTZ area is envisaged to be taken from these two trunklines. Further, the area of TTZ is large with targeted towns and cities to be supplied with gas, located considerable distance apart with large tracts of uninhabited land in between. Considering the above, it may not be economically viable to conceive a network in the complete area with a single or couple of sources and reaching all areas from there. It would be prudent to have multiple sources of gas from points on the source pipelines suitably located for major demand centres. Thus conceiving the CGD network for TTZ GA in such a way that the total network in the GA essentially comprises a few smaller gas distribution networks which may be, for all practical purposes, independent of each other, for the reason that interconnecting these independent networks would result in substantial increase in the dead length of the steel pipeline. For the purpose of optimisation of pipeline network and downstream distribution following five distinct areas have been identified and are envisaged to have five different sources of gas.

05.04.01 Chhata-Chaumuhan-Vrindavan-Raya-Hathras Area For the area comprising Barsana, Nandgaon, Vrindavan, Raya and right upto Hathras it is envisaged that gas shall be tapped from the SV 10 of GAIL’s GREP

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pipeline near Chhata sugar mill lying just on the north-western fringes of the TTZ Geographical area.

05.04.02 Firozabad Area

Source of gas for the consumers in Firozabad area would be the Bhajer-Agra-Firozabad pipeline of GAIL with the gas being tapped from the existing city gate station at Firozabad.

05.04.03 Govardhan Area

Source of gas for the consumers in the Govardhan area would again be GREP pipeline of GAIL with the gas being tapped from the SV 9.

05.04.04 hajera-Bharatpur Area

For meeting the gas requirement of the various consumers in and around Bharatpur city, gas is envisaged to be tapped from the SV 8 of the GREP pipeline of GAIL.

05.04.05 Achnera-Kiraoli-Fatehpur SIkri Area In order to supply gas to the various consumer segments in the Achnera-Kiraoli-Fatehpur Sikri belt, Bhajera-Agra-Firozabad pipeline is envisaged to be the source with gas being tapped from its SV station nearest to Achnera. It is assumed that the required quantity of natural gas for the CGD network in TTZ area shall be made available by the natural gas suppliers, from the above mentioned sources.

05.04.06 City Gate Station (CGS)/Metering System

All the five different sources of gas indicated above would individually require city gate stations with all the associated facilities. It is assumed that these CGSs, if need be with suitable modifications at a future date, shall be able to meet the requirements up to the 25th year.

It is considered that natural gas at an outlet pressure between 49-24 kg/cm2(g) at the CGSs shall be available for the PNG & CNG facilities in the area.

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The Odourising Units with Ethyl Mercaptan as odourant shall be installed at the City Gate Stations in line with the regulatory requirement.

05.05 Design of Pipe Line and CNG Network

05.05.01 Peak Load

The rate of consumption of gas in various consumer sectors is not uniform.

Actually, maximum quantity of gas for a day in each sector is consumed within a fixed time in a specified manner (Refer assumptions given below for each sector). During this period the rate of flow of gas increases.

This increased flow rate is termed as Peak Load. The system has to be designed

for a higher capacity based on the Peak Load requirements of all consumer segments.

Based on the realisable demand of 25th year, following sector wise peak loads

have been arrived at and considered for design of system: Table – 05.03

Sector

25th Year REALISABLE

DEMAND, in MMSCMD

Peak load (25th Year)

MMSCMD

DOMESTIC 0.0586 0.1758

COMMERCIAL 0.0037 0.0074

INDUSTRIAL 2.0301 2.7068

AUTOMOBILE 0.3270 0.5886

Total 2.4194 3.4786

The peak loads have been determined considering following:

For Automobile Sector, the peak loads have been worked out considering 60% of daily demand to be met in 8 hour and balance 40% in remaining period.

For Industrial Sector, the peak loads have been worked out

considering 18 hour working in industrial units.

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For Commercial Sector, the peak loads have been worked out considering 12 hour working in commercial units.

For Domestic Segment, the peak loads have been worked out considering consumption in 8 hour per day.

05.05.02 Steel Pipeline

The Steel grid line network has been designed to cater to a pressure of up to 49 kg/cm2, however, the maximum working pressure is considered to be 24 kg/cm2(g) in most part of the network, barring a portion of the Firozabad grid where the pressure is envisaged higher. As mentioned earlier, there shall be five independent CGSs for supplying gas to the various areas in TTZ. These five CGSs shall feed gas to the five pipeline systems which shall be for all practical purposes independent of each other. All these pipeline systems put together, shall traverse a total length of about 142.8 km from the various City Gate Stations. The branches of 4” and 6”/8” shall be taken from this main grid line up to the CNG stations, industrial units and DRSs as needed. The scheme has been elaborated in the Schematic Drawing attached. The scheme has been developed by optimising the pipeline sizes using engineering design software (refer software generated schematic diagram enclosed at Annexure-Ia & Ib)

a) Automobile, domestic, commercial and industrial consumers in Taj

Trapezium Zone Geographical Area are proposed to be fed from gas transported through the above mentioned grid line network.

b) The laying of major portion of grid line of 10”dia. (47.7 km), 8” dia (49

km), 6”dia (0.8 km) and 4” dia (45.3 km) is envisaged to be completed in first two years with approximately 70% being laid in first year. Refer implementation Schedule (Fig-7.01 and 7.02).

c) The total inch Km of pipeline proposed to be laid in first five years (i.e.

the period of exclusivity) is as given below:

Table: 05.03

Period Pipe Detail

1st Year 2nd Year 3rd Year

10" x 6.4mm- API 5L Gr X42 (Total- 47,700 m)

Chhata-Vrindavan Crossing – 21 km

33,390 m

(333.9 Inch-KM)

14,310 m

(143.1 Inch-KM)

-

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Period Pipe Detail

1st Year 2nd Year 3rd Year

Firozabad CGS – Arya Nagar - Makhanpur - 26.7 km

8" x 6.4mm- API 5L Gr B (Total- 49,000m) Vrindavan Crossing – Raya – Hathras – 45 km

Inner By-pass Firozabad - 4 km

34,300 m

(274.4 Inch-km)

14,700 m

(117.6 Inch-km) -

6" x 6.4mm- API 5L Gr B (Total – 800 m)

Inner By-pass Firozabad – Jalesar Rd - 0.2 km

Karbala Rd – Suhag Nagar - 0.6 km

800 m

(4.8 Inch-km) -

4" x 6.4mm- API 5L Gr B (Total- 45,300 m)

Chhata – Nandgaon/Barsana – 10 km

Achnera – Kiraoli – Fatehpursikri - 13 km

Bhajerar – Bharatpur - 10 km

GREP – Govardhan - 5 km

Misc. Firozabad - 7.3 km

31,710 m

(126.84 Inch-KM)

13,590 m

(54.36 Inch-KM) -

The total Inch-KM of Steel pipeline envisaged to be laid in first five years

i.e. the period of exclusivity is 1065.

The line shall have the following design parameters: Design pressure : 49 Kg/cm2(g) Specific Gravity of natural gas : 0.63 Density of Gas : 0. 76 kg/scm

Design Temperature - Buried : 45°C - Above Ground : 65°C Joint Factor : 1 Temperature Factor : 1 Population Density Factor-Gridline : Class-IV Design Life : 30 Yrs Pipe Line Specification

- Pipeline Material : For all size P/L : API 5L Gr.42 /API 5L Gr.B

6.4 mm WT. - Corrosion Allowance : 0.5 mm - Pipeline Efficiency : 0.9

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5.06 CNG Stations & Design Parameters for CNG Stations

Based on the available projected demand, various facilities have been planned in a phased manner and the same has been shown in the Implementation Schedule (figure-07.01 and 07.02). Commensurate with growth in demand for CNG, the facilities shall be added in a staggered manner as detailed in Table 05.04 below: Table: 05.04

No. of installations STATIONS Cap. of compressor

in SCMH Upto 5th

year

Beyond 5th

year

Year of

installation

A ) Mother Stations – Green Field

Firozabad on NH Near CGS

1200 650

1

1 1

1st & 7th 13th

Near Chhata on NH 1200 1 1 1st & 11th

Hathras (on NH )

1200 1 1 1st & 9th

Bharatpur On Agra Highway

1200 650

1 1 1

1st, 13th

10th Raya On Proposed Taj Expressway

1200 1 1 5th & 14th

Vrindavan X-ing (on NH )

1200 - 2 8th & 16th

Achhnera On Bhajera-Agra Highway

1200 650

- 2 1

10th & 18th 9th

Hathras (on NH)

1200 - 2 21st & 22nd

C) Mother Stations (OMC ROs)

Firozabad on NH Near Collectorate

1200 1 1 5th & 20th

Hathras 1200 - 1 10th Firozabad on NH Jalesar Road

1200 1 1 5th & 20th

D) Daughter Booster Stations

26 Nos of DBS 250 20 6 Refer Imp. Sch.Note:

1. The Compressors proposed shall be operating at 14-19 Kg/cm2 (g) to 255 Kg/cm2 (g).

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The daughter booster stations shall be chosen such that they provide a good geographical spread for the CNG network. CNG Cascades of 4500 water litre capacity are envisaged installed at all the Green Field Mother Stations. At the Mother Stations on OMC ROs, 3000 water litre capacity cascades are proposed. Adequate number of cascades along with LCVs shall have to be deployed to ensure uninterrupted CNG supply to DBSs. Adequate number of Bus, Car/ Auto dispensers have been envisaged to maintain a healthy dispensing capacity to gas demand ratio.

5.06.01 Design Parameters for CNG Stations

The planned gas demand for the automobile sector in different years is as mentioned in Table 05.05 below:

Table: 05.05 CNG DEMAND, in MMSCMD

2nd Year 5th Year 10th Year 15th Year 20th Year 25th Year 0.0070 0.0370 0.1870 0.2230 0.2670 0.3266

Accordingly, the following installations shown in Table – 05.06 have been planned considering below mentioned design parameters of filling stations.

Compressor Capacity of Filling Stations

Table – 05.06 Year wise Comp. Capacity x No. of Comp.

(@ 18 Hrs per day)

Sl.

No.

Facility Year Comp. Capacity x No. of

Comp.

No. of

Dispensers

1. Mother Stations

1st

2nd

3rd

4th

5th

6th

7th

8th

9th

10th

1200 SCMH X 4 - - - 1200SCMH x 3 - 1200 SCMH X 1 1200 SCMH X 2 650 SCMH x 1 1200 SCMH X 2

Bus Disp.-- 12 Car/Auto Disp.-- 12 Bus Disp.- 7 Car/Auto Disp.- 7

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Year wise Comp. Capacity x No. of Comp.

(@ 18 Hrs per day)

Sl.

No.

Facility Year Comp. Capacity x No. of

Comp.

No. of

Dispensers

12th

13th

14th

16th

18th

19th

20th

21st

22nd

650 SCMH x 1 1200 SCMH X 1 650 SCMH x 1 1200 SCMH X 1 1200 SCMH X 1 1200 SCMH x 1 1200 SCMH X 1 1200 SCMH x 2 1200 SCMH x 1 1200 SCMH x 1

Bus Disp.- 4 Car/Auto Disp.- 4

TOTAL CAPACITY 4,34,400 SCMD

2. Daughter Booster Stations #

250 SCMH** x 1 x 26 Car/Auto Disp.-

52

** at 30 kg/cm2(g) Inlet Pressure

The number of compressors have been added over the years to maintain a healthy

compression capacity to gas demand ratio, being 1.26 at the end of 25th.

Considering the fact that TTZ area comprises nearly 10,000 sq km and in view of the larger spread of the area substantial number of DBSs have been envisaged to cater to the CNG demand of the comparatively smaller towns and cities located away from the steel network. For the reason that CNG Mother stations are proposed only at major and strategic locations, additional number of DBSs have been envisaged and as a result, the number of dispensers considered end up with a very healthy Dispensing capacity to gas demand ratio over the 25 year period. The design parameters for the above CNG facilities and number of CNG cascades are as follows:

Inlet pressure : 19 Kg/cm2(g) for MS

Outlet pressure : 255 Kg/cm2(g)

Cascade capacity

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- Mother Station : 19 Nos x 4500 lit/cascade

- Mother Station : 5 Nos x 3000 lit/cascade (OMC RO) Daughter Booster Stations : 26 nos. x 2200 lit/cascade LCV Mounted (Mobile) : 39 nos. x 2200 litres of water/cascade

- Average Filling Capacity :

Bus : 80 kg

Car : 8 kg Auto : 3.5 kg

- Average Filling Time/Vehicle:

Bus : 8 minutes

Car : 4 minutes Auto : 2 minutes - No. of Arms per Dispenser :

Bus Dispenser : 1 no.

Car Dispenser : 2 nos. Auto Dispenser : 2 nos.

Following total CNG facilities along with associated infrastructure shall be in place by 5th year and every 5 years thereafter:

Table: 05.07

Quantity (Nos.)

Sl.

No.

Facility

By 5th Year from 6th to

15th Year

from 16th to 25th

Year

1. Compressors:

1200 SCMH

7

7

7

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650 SCMH

250 SCMH

-

20

3

6

-

-

2. Dispensers:

For Bus

For Cars/Auto

12

52

7

19

4

4

3. Cascades:

4500 WL cap.

3000 WL cap.

2200 WL cap.

5

2

20

9

1

6

5

2

-

05.07 Design Parameters for PNG Distribution Network

The pressure regimes that shall be followed for the system design are: Distribution/ Service Line (Medium Pressure System): 6 - 1.5 bar, MDPE Domestic Connection (Low Pressure System): 21 m bar, GI/ Copper Installation Supply pressure large commercial consumer: 2 bar * Supply pressure small commercial consumer: 300 / 500 mbar * Industrial Consumers: 2 bar- as per requirement* Supply pressure to commercial consumers shall be need based

05.07.01 PNG Distribution for Industrial Consumers

Out of the total area of TTZ industrial activity is substantial only at three major locations, with the lions share being that of Firozabad and the other two being Bharatpur and Hathras. The following major industrial areas have been targeted for Industrial PNG distribution: Firozabad

Industrial Estate near Dholpur

Raja Ka Taal

Rehana Road

Karbala Road and Suhag Nagar

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Purani Mandi

Pameshwar Gate

Saraswati Nagar

Kotla Road

Hanuman Garh

Makhanpur

Bhartpur

Brij Industrial Area (RIICO)

Purana Industrial Area

Hathras

Industrial Area

It is envisaged that the industrial units in different areas would be catered

through the PRSs/ MRSs meant for the area. Individual industrial units shall be

supplied through Steel pipeline or MDPE network originating from the DRSs,

depending on the load requirements.

05.07.02 PNG Distribution for Commercial Consumers

The commercial consumers comprise Hotels, Restaurants, Food Joints, Hostels and Hospitals. The supply of PNG shall be made available to these consumers through MDPE network which shall be through PRSs/ DRSs jointly catering to the needs of domestic as well as commercial consumers.

05.07.03 PNG Distribution for Domestic Consumers The domestic connections would be provided with uninterrupted gas supply at a pressure of 21 mbar to all the locations in TTZ for which PNG distribution has been envisaged. Following is the proposed number of domestic connections to be provided in different years:

Table: 05.08

No. of Domestic Connections (cumulative)

5th Year 10th Year 15th Year 20th Year 25th Year 63600 74600 88000 107000 117200

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05.08 Pressure/District Regulating Stations (PRS/DRS)

It is planned to have common PRSs/DRSs (as the case may be) for all domestic and commercial connections and for some of the industrial connections. Considering the large area coverage of the TTZ and the requirement to feed to gas to comparatively much smaller towns and cities, smaller capacity DRSs have been envisaged and multiple locations. In this connection DRSs of 400 SCMH, 600 SCMH, 1250 SCMH and 2500 SCMH capacities have been envisaged.

Period DRS (Capacity in SCMH)

400 SCMH 600 SCMH 1250 SCMH 2500 SCMH1st – 5th Year 3 nos. 7 Nos 3 Nos 2 nos. 6th – 10th Year - - - - 11th – 25th Year - - - -

05.09 MDPE Network

It is planned to install MDPE network of following sizes: dia. 180mm, PE 100, SDR 11 dia. 125mm, PE 100, SDR 11 dia. 63mm, PE 100, SDR 11 dia. 32mm, PE 100, SDR 11 dia. 20mm, PE 100, SDR 11 The Network would begin from MRS/DRS and enter upto premises of industrial, domestic and commercial units.

05.10 Codes, Specifications & Guidelines

Steel Pipes ANSI/ ASME B31.8 OISD 141 API 5L New Pipeline Policy

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MDPE Pipelines for U/G Gas Services ANSI/ ASME B31.8 IS 14885 / ISO: 4431 OISD 220

CNG System

OISD: 179, 132, 110, 137 & 220 NZS – 5425 NFPA – 37, 52, 70 ANSI B31.3 & B31.8 IS-2148 API – 11P, API – 618 Indian Electricity Rules Indian Explosives Act ASTM, NEMA, NGV, NEC CCOE & Latest Regulations of PNGRB

CHAPTER – 6

SYSTEM DESCRIPTION

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M E C O N

H:\rajesh\Market Survey\TTZ\Final\Chapter - 06 - System Description.doc 06-1/20 © 2010 MECON Limited. All Rights Reserved

06.00 SYSTEM DESCRIPTION 06.01 General

To meet the projected gas demand of the entire Taj Trapezium Zone Geographical Area, it is envisaged to lay a Distribution Network of Natural Gas pipelines in the cities and other areas. The steel main grid would be laid initially and installation of equipments would be done in a phased manner as described in Chapter-07.00 (Implementation Schedule). The technical details of the equipments & infrastructure proposed to be installed to meet the requirement of Natural Gas Demand in the Domestic, Commercial, Industrial & Automobile sectors is elaborated below.

06.02 City Gate Stations

As already stated in the previous chapter, in view of the large area coverage the gas distribution network in the TTZ area has been conceived in a way that the entire network in effect comprises of separate gas supply systems for areas of major gas demand potential. These systems are for all practical purposes independent of each other and have separate gas off-take points as well. In all five nos of City Gate Stations have been envisaged out of which three nos., the ones for Chhata, Govardhan and Bharatpur are on the GREP pipeline and the other two, for Achnera and Firozabad lie on the bhajera-Agra-Firozabad pipeline. So to summarise the above arrangement, CGS near SV10 of GREP – Gas for Barsana, Nandgaon, Vrindavan, Raya,

Hathras area CGS near SV 9 of GREP - Gas for Govardhan area CGS near SV 8 of GREP - Gas for Bhajer, Bhartpur area CGS near Achnera - Gas for Achnera, Kiraoli, Fatehpur sikri area (Bhajer-Agra-Firozabad P/L)

CGS near Firozabad - Gas for Firozabad area (Bhajer-Agra-Firozabad P/L)

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The City Gate Stations envisaged are to be a skid type having filtration, pressure reduction and flow measurement facilities with following major items:

i) Isolation valves ii) Cartridge filters iii) Pressure regulators iv) Slam shut valves v) Turbine/ultrasonic flow meters vi) Cold venting facilities vii) Pressure Safety valves viii) Instrumentation

A typical schematic layout of facilities / equipment installed at CGS is given in Annexure-III-A. Odorising Facilities

Odourising system shall be provided at the city gate stations to detect any accidental leakage of gas. It is envisaged to have 1 no. of Odourising unit installed along with the Metering Skid. The odourisation injection rate shall be based on the flow rate of the gas. The odourant proposed to be used is Ethyl Mercaptan. The odorant, ethyl mercaptan provides a good odour impact and is commonly available in India. The odorant sulphur compounds do not harm the natural gas transmission or steel pipeline system because highly elevated temperatures are required to convert these compounds into acidic substances.

06.03 Steel Pipeline Grid

The steel grid line has been designed to cater to pressure upto 49 Kg/cm2, as

per the recent guidelines of PNGRB. The main grid line has been designed based on the following design parameters:

Design pressure : 49 Kg/cm2(g) Specific Gravity of natural gas : 0.687 Density of Gas : 0. 83 kg/scm Design Temperature - Buried : -29 to 60 °C

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- Above Ground : - 29 to 65°C Joint Factor : 1 Temperature Factor : 1 Population Density Factor-Gridline : Class-IV Design Life : 30 Yrs Pipe Line Specification

- Pipeline Material For 10” size P/L : API5LGr.X42, 6.4mm WT

For 8”, 6”, 4” size P/L : API5LGr.B, 6.4mm WT

- Corrosion Allowance : 0.5 mm - Pipeline Efficiency : 0.9

The layout of the steel grid line along with equipments is shown in Annexure-III -B.

06.03.01 Sectionalising Valve Station (SV Station)

Sectionalising valve station shall be provided to facilitate maintenance of system and to allow for speedy isolation in the event of accident. The location of the SV station shall be at every 3.0 Km distance in the city areas to facilitate maintenance, repair, modification, testing and commissioning etc. However for the cross country portion of the pipeline the same shall be 15 km. The Sectionalising Valve station shall have following features: Sectionalising valve Tap-Off on upstream (future provision) Cold venting facility SV station shall have full bore gas actuated ball valve with extended stem.

6” /4” dia. Tap-offs (for 10”/8”/6” grid lines) shall be provided for future use. Provision shall be made for safe blow down of gas into the atmosphere through Vent. A vent pipe of minimum 3m height above ground and located at a suitable safe distance from the valve assembly shall be provided.

To install the facilities a plot size of 5m x 8m shall be required.

06.03.02 Cathodic Protection (CP) System

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For efficient and satisfactory functioning of the main grid line system, both from safety and economic point of view, the steel pipeline must be protected against corrosion.

External protection shall be provided for prevention of pipeline corrosion. This

external protection shall be a combination of corrosion coating and cathodic protection techniques. Conventional coating of pipelines by 3-layer Polyethylene (PE)/ FBE coating shall be used as “passive” protection.

Complete corrosion protection cannot be achieved practically by external

coating, as it is impossible to fully avoid minor defects such as pores or cracks in the coating. Welded pipelines are particularly prone to corrosion at coating holidays because of their low longitudinal resistance, i.e., they practically do not resist the flow of current through the pipeline. At these holidays, dangerous pitting corrosion is initiated. Because of the high corrosion current density, this phenomenon often causes rapid corrosion failure.

Cathodic protection is a method for protecting the pipe reliably even at

undetected coating holidays. The protective current supplies electrons to the structure to be protected.

Based on the experience and other relevant data as well as indigenous

availability, PE/ FBE coating shall be provided as external corrosion coating for the pipeline.

Salient features of the CP system proposed for Grid Line are described as

follows:

i) The steel pipeline system shall be cathodically protected by an impressed current CP system as a permanent facility.

ii) Necessary measures shall be adopted to mitigate stray current

interference due to the interference along the proposed line and the existing lines (protected and unprotected that may exist in and around the ROW).

iii) Temporary Cathodic Protection (TCP) shall be provided during

construction phase of the proposed line by suitable means. iv) All the cased road/ rail crossings shall be provided with proper insulating

spacers, end seals, drain and vent pipes. The casing pipes shall be independently protected by sacrificial anodes, wherever necessary.

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v) Minor crossings need not be isolated but extra care in their protection

shall be exercised.

iv) For monitoring purposes in normal cases test stations shall be installed at intervals not exceeding 1 km but in congested area test station shall be installed at intervals of 250 metre. In addition, test points shall be provided at all crossings and near insulating joints.

v) Interference effects, wherever suspected or observed shall be duly

investigated and remedial measures provided, wherever necessary.

vi) Insulating joints shall be provided on the proposed line at all necessary

locations where electrical isolation is desirable such as at CNG Stations and DRS. The grounding cells/ spark gap arresters will also be installed across insulating joints.

06.04 SCADA System

For the subject project, it is proposed to have SCADA System to ensure effective and reliable control, management and supervision of the pipeline from a centralized location using remote terminal units (RTUs) located along the pipeline at suitable locations.

A SCADA system typically either controls the infrastructure, by way of adjusting set points and opening/ closing valves, or monitors the system by way of data acquisition. Where a SCADA system only monitors, the system control functions shall still need to be performed by field operations staff. The SCADA & APPS system shall meet the requirements of Open architecture.

For voice and data communication between stations and Master Control Station, dedicated Optical Fibre Cables (OFC)/ Satellite Link/ Leased Line/ GSM/ CDMA Network can be used. This will be implemented based on the criticality and the capacity of the end user. The locations where dedicated OFC network is not considered with pipeline, to meet the voice and data communication requirement of these locations Leased Line/ GSM of other service provider / operators available at city can be used for the limited SCADA (dedicated time polling not a real time polling).

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Master Control station (MS) is proposed at Firozabad and RTU at each CGS will be provided. All large consumers will be connected with respective RTU of CGS through GSM. The RTU will be connected to MS with existing GAIL telecom network / leased line of other service provider / operators available between each CGS location and Firozabad. This will cater telecom requirements of the pipelines network.

06.05 CNG Distribution Network

Natural Gas shall be transported from CGS to Compressed Natural Gas (CNG) Station through main grid pipeline described above.

06.05.01 CNG Stations

The following types of CNG stations are planned in TTZ area for catering to the demand of automobile sector:

06.05.01.01 Mother Stations

The following units have been envisaged in Mother Station: A. Main Equipment

i) Gas Driven Mother Compressor of 1200 / 650 SCMH capacity

along with auxiliaries ii) Dispensers for buses iii) Dispensers for cars and three-wheelers (autos) iv) Loading Facility for Mobile Cascades v) Stationary Cascades of 4500 WL capacity vi) DG Set, UPS & Battery Bank, AVR, Electrical Control Panel vii) Instrument Air and Water Facilities viii) Fire Fighting equipment and safety sign

B. Other Facilities as per requirement of the station

i) Office-cum-Control Room ii) RCC forecourt, canopy over dispenser island and signages iii) Stainless steel tube connecting compressor, dispenser &

cascades laid in U/G trenches iv) U/G drainage and sewerage network

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v) Approach/ exit road, boundary wall etc.

The above facilities shall vary as per requirement for the Mothers Stations located on OMC ROs.

Process flow diagram for CNG Mother Station and typical plan for proposed CNG Mother Station are shown in Annexure-III - C.

06.05.01.02 Daughter Booster Station

The following units have been envisaged in each Daughter Booster station:

A. Main Equipment

i) Booster Compressor along with auxiliaries ii) Dispensers for cars and three-wheelers (autos) iii) Stationary Cascades iv) DG Set, UPS & Battery Bank, AVR, Electrical Control Panel v) Instrument Air and Water Facilities vi) Fire Fighting equipment and safety sign vii) Unloading facility from mobile cascades

B. Other Facilities

i) Office-cum-Control Room ii) RCC forecourt, canopy over dispenser island and signages iii) Stainless steel tube connecting compressor, dispenser &

cascades laid in U/G trenches iv) U/G drainage and sewerage network v) Approach/ exit road, boundary wall etc.

06.05.01.03 Equipment Description

A) Mother Compressor (1200 SCMH / 650 SCMH)

Reciprocating type compressors, each of capacity 1200 sm3/hr at suction

pressure 14-19 kg/cm2(g) and discharge pressure 255 kg/cm2(g) shall be installed at mother stations. The compressor will be gas driven with a

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gas load of about 50 sm3/hr for 1200 SCMH compressor and 30 sm3/hr for 650SCMH compressor. The compressor will start automatically in case cascade pressure falls less than 210 kg/cm2(g) and will unload at pressure 255 kg/cm2(g).

Main Specification/ Features

2-Stage/3-stage reciprocating type compressor with console type

air cooling and safety relief valve at each stage, after cooler at final discharge along with all services lines, tubing, valves, instrument and auxiliaries.

All mother compressors shall have mass flow meters both at suction and discharge to avoid separate metering skids for the stations. These will have both the advantages of lesser cost and saving in space.

Engine with gas flow meter with electronic volume corrector, totalizer and associated equipment.

Control system will ensure unattended safe operation in automatic mode. The priority fill system will ensure maximum flow rate by filling of vehicle, storage cascade and mobile cascade in assigned order.

Entire compressor equipment shall be mounted on one skid and packaged in an acoustically insulated housing

The engine and compressor will be housed in the same package unit. The housing will be flame & fire proof and provided with forced ventilation, flame arrestor, infra-red flame detection & alarm system, automatic shutoff, automatic CO2 flooding and other fire retardant features.

The compressor will be provided with the required control system using PLC; instrumentation and controls; emergency shut down device and electric supply system.

The entire compressor system shall be earthed.

B) Booster Compressor To increase the dispensing speed & reduce waiting time for filling at

daughter station and better utilisation of cascade capacity, one hydraulic/reciprocating type electric motor driven compressor with 22 kW load and of capacity 250 sm3/hr at suction pressure of 30 kg/cm2(g) has been envisaged at daughter station. This booster compressor shall

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operate at mobile cascade pressure/suction pressure from 30 to 200 kg/cm2(g) with discharge pressure of about 255 kg/cm2(g).

C) Dispensers

Compressed natural gas from compressor/cascade shall be dispensed to NGVs (Natural Gas Vehicles) such as cars, three wheelers, buses, etc, through dispensers. Following two types of dispensers have been envisaged: - Bus Dispenser

To meet the requirement of bus filling at mother stations, single arm bus dispenser, each of capacity 80 Kg/min has been envisaged. The system shall be designed in such a way that when compressors are in operation, the bus dispenser will take about 65 Kg/min gas from cascade and about 15 Kg/min gas from compressor.

- Car Dispenser

To meet the requirement of car and three wheeler filling at mother, on-line and daughter stations, double arm type car/ auto dispensers, each with a capacity of 15 Kg/min have been envisaged.


The car dispenser shall have two arms and bus dispenser shall

have one arm for dispensing the gas. `Coriolis’ true mass flow metering system or equivalent with

necessary sensor & electronics shall be provided with provision of liquid crystal backlit display for night viewing which will show unit price of CNG in Rs./ Kg, quantity of gas sold in Kg & total sale in Rupees. A tamper proof totaliser shall be provided.

PLC based sequencing software and controller including hardware alongwith ball valves associated with pneumatic actuation for dispensing of gas shall be provided.

Two CNG flexible electrically conductive twin fill and vent hoses with two NGV-1 Type-2, Class – A fill nozzle with captive vent including 3-Way vent shall be provided.

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All dispensers shall be earthed.

E) Stationary Cascades

Cascades are used to store the CNG at high pressure, to absorb the surge of reciprocating compressor, frequent start and stop of compressor and to supply additional gas when dispensing rate is more than compressor capacity. Compressor will start if pressure in cascade falls below 210 kg/cm2(g) and stop at pressure 255 kg/cm2(g). For a pressure range of 220 kg/cm2(g) to 255 kg/cm2(g), in cascades of 4500 litre, 3000 litre and 2200 litre capacity, approx. 750 kg, 500 Kg & 350 Kg respectively, of CNG can be stored. The cascade shall supply gas to bus as well as car/ auto dispensers.


Cascade shall be made of group of cylinders fixed with structural

steel frame having facility of lifting and placement. The cylinder and their neck threading shall be designed as per

latest editions of IS:7285 & IS:3224, respectively, and approved by Chief Controller of Explosives (CCOE), Government of India.

The cylinder shutoff valve shall be with fusible disc confirming to requirements of latest edition of IS:3224 or CCOE approved.

All end connections for quick release couplings, PG, valves and fittings of cascade shall be within tamper proof enclosure. These shall be on one side of cascade for ease of operation.

F) Mobile cascade

2200 litre water capacity cascade shall be fitted in light commercial vehicle (LCV). The mobile cascades will be filled at Mother Station upto 255 kg/cm2(g) pressure . Mobile cascade at pressure 255 kg/cm2(g) will be sent to daughter station for filling of the stationery cascade with the help of Booster Compressor. Empty mobile cascade at pressure lower than 30 kg/cm2(g) shall come to Mother Station for refilling. Approximately 350 Kg of gas can be transported from this cascade. The entire assembly shall be CCOE approved.

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Suitable loading facility at Mother Station and unloading facility at Daughter Station has been envisaged along with sun/rain protection shed.

G) DG Set, UPS & Battery Back-up & AVR

DG Set To meet the requirement of emergency power in case of grid power

failure, one DG set of capacity 15 KVA has been envisaged at MS. The DG set shall start automatically in case of grid power failure. Emergency loads shall be connected to DG set.

UPS & Battery Back-up – a one-hour UPS and battery back-up system

shall be provided at each station. AVR – A suitable automatic voltage stabilizer based on local supply has

been envisaged. Electrical System (Refer 06.07.06) – The electrical system shall

comprise of conduit work including junction boxes, wiring for lighting and power; fittings & accessories; cables, mains and sub-mains; LT panel, main & sub-distribution panels, capacitor panels; cable trays, GI conduits; earthing system; area lighting, canopy lighting, signage lighting & control room illumination etc.

H) SS Tubing

Shall run in underground concrete/ masonry trenches for conveying of

compressed gas from compressor to priority panel to dispenser and priority panel to stationary cascade to dispenser.

I) Water Supply & Underground Services

To meet the water requirement at mother stations, water supply network consisting of bore well, vertical pumps, submersible pumps and interconnecting piping has been envisaged.

Two nos. underground RCC water tanks shall be constructed. These tanks shall receive water from municipality and bore well. Water from these tanks shall be pumped to overhead tanks placed at building roof.

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Two nos. vertical pumps of capacity 2000 to 2500 l/hr, head 19 to 26 M, 0.5 HP shall be installed in these RCC tanks.

One bore well of suitable depth and size will be constructed. One submersible pump of capacity 3,000-5,000 l/hr, head 50-60 meter, approx. 2 H.P. shall be installed in the bore well.

Underground drainage, sewerage network comprising of drain pits,

drainage pipe, septic tank and soak pit shall be installed apart from municipal connections.

J) Control Room-cum-Office & Other Facilities

This shall be an RCC framed structure of suitable size to house office,

control room, electrical room, cash box and toilet. The front side shall have glazed partition for viewing dispensing operation. The floor will have ceramic tiled finish and synthetic emulsion paint on walls and ceiling have been considered.

The station shall be enclosed with 2.1m high boundary wall on

three sides. The forecourt shall be made of high riding quality RCC pavement

with wearing resistant surface. The SS tube trenches and drainage shall be covered with heavy

duty precast SFRC covers of suitable design and manufacture. GI conduits shall be laid for cabling work. Properly designed dispenser island with safety guards shall be

provided. Structural steel canopy shall be provided over the dispensing

area for providing sun and rain protection. The canopy shall have provision of roof drainage, illumination and signages.

The station shall be provided with approach roads, entry and exit ways, parking bay, operation area fence, safety barbs, road signs, station drainage system etc.

The station shall be provided with corporate traffic and safety signages using state of art techniques and landscaping.

The station shall be provided with safety & fire fighting equipment, earthing pits and safety instructions.

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06.06 MDPE Distribution System The downstream gas distribution network shall receive gas from DRS at a pressure of 7 bar for onward distribution to domestic, commercial & Industrial consumers. The distribution system shall comprise of –

District Regulatory Station (DRS) MDPE pipe network GI / Cu pipe network Office-cum-Control Room for operation & maintenance. A typical Natural Gas Distribution System is given in Annexure-III-D.

06.06.01 District Regulatory Stations (DRS) In a DRS the pressure reduction and metering equipment is fitted in a single

self-contained skid-mounted cabinet. This regulator will bring down the pressure from 14 – 19 kg/cm2(g) (max) to 7 kg/cm2(g). The capacities of DRSs proposed are 5000 SCMH and 1000 SCMH @ 7 kg/cm2(g).

The DRS shall work as pressure reducing and gas metering facility. The DRS shall comprise of pressure reduction, metering system, condensate removing facility and cold venting facility. Filter Separator shall be provided at the inlet of each run of the pressure reduction metering assembly. Filtration efficiency shall be 99.9% for the removal of all particles from 3 micron size onwards. The flow measurement meter shall be of Turbine type. The error limits shall be ± 2% in the range between Qmin and 0.2Qmax and ± 1% in the range between 0.2Qmax and Qmax. The regulating assembly shall be a dual run assembly with each run designed for the full flow capacity required for the station and manual isolating valves provided to facilitate servicing of each run without shutdown of the station.

A typical schematic arrangement of the DRS / Pressure Regulating Installation is shown in Annexure-III-F.

06.06.02 MDPE pipe network For commercial and domestic consumers it is proposed that low pressure (7

kg/cm2(g)) underground network be provided for safety reasons, as it is safe for inhabited areas, easy to lay and economical. Further Industries having less gas

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requirement can also be supplied through MDPE network provided it is conveniently located.

It is recommended that the distribution system be constructed from MDPE at 7

bar pressure. The polyethylene fused joints are as strong as the parent pipe, ensuring the integrity of the pipe system. The polyethylene compound used in the manufacture of pipes shall be free from cadmium & visible water and shall conform to the weathering requirements for thermal stability and hydrostatic strength. The pipeline shall have 180 mm, 125 mm, 63 mm, 32 mm and 20 mm diameter pipes to form the complete distribution reticulation system. The system is divided in two broad categories, namely:

Distribution Mains Distribution Service

A) Distribution Mains

Distribution Mains shall primarily be responsible for carrying the gas to the colonies for further distribution by Distribution Services.

To standardise the distribution system, it is proposed to install only four

sizes of pipes – 32mm, 63mm, 125mm and 180mm (OD). MDPE pipes shall be fused by electrofusion coupling. The distribution pipe is proposed to be of SDR11, PE100 Grade (SDR is defined as the normal outside diameter (DN) divided by the minimum wall thickness.)

All MDPE pipes shall have minimum cover of one meter and shall be back filled with sand around it to protect the plastic material. Emphasis shall be placed on utilizing modern construction techniques to install the distribution system. This shall include, wherever possible, avoiding disruption/ damage to road and footpaths, by boring and drilling. Large crossings, such as canals, major roads, etc., shall be carried out using Horizontal Directional Drilling (HDD).

It is proposed to have valves on the distribution and transmission

networks at strategic locations to ensure security of supply (a minimum of one valve for every kilometre of MDPE distribution mains).

It is proposed to install plastic protection strips (warning tapes) 300mm

above the MDPE pipe, to warn any agencies digging the area well ahead of reaching depth of MDPE pipe.

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To ensure system integrity and safety, prior to commissioning, the MDPE pipes shall be pneumatically tested.

B) Distribution Services

Distribution Service lines are laid underground to connect customers from the Distribution Mains upto the customer premises, then laid vertical to rise above the ground level just below the proposed regulator point. The few centimetre of the MDPE pipeline that rises above ground shall be protected by GI pipe sleeve. Since most services must cross roads/ footpaths to reach the customers, they are usually installed by boring to reduce restoration costs. Open excavation is required only at the connection to the main as well as at the service. Warning tapes shall be installed all along the route where open cut is used for pipe laying. A typical service diagram for 20mm MDPE service pipeline is shown below:

C) Meter/ Regulator Assemblies

a) Domestic Consumer Services

The MDPE pipe shall be connected to GI network inside the consumer premises through a transition joint. A pressure regulator shall reduce pressure from 7 bar to 21 millibar. This GI pipe shall be laid upto the meter from where Cu pipe would be laid to reach the hose of the burners through the shortest possible route with minimum bends. A typical domestic consumer service pipe/ meter/ regulator arrangement is shown below:

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In apartment-type premises, a number of households can be supplied with gas from a single service line. A single regulator shall supply gas to a block of three households with individual metering for each. Each service line shall include a main isolation valve and a regulator, reducing the pressure to 21 mbar.

Schematic diagram for GI / Cu system (domestic) in Annexure-VI.

b) Commercial Meter/ Regulator Assemblies

The service pipeline to commercial consumers shall depend on the load required. For large commercial user, pipe sizes shall be considerably larger than domestic & small commercial premises and a higher gas supply pressure shall be required.

Commercial Meters shall be of two different categories catering to small and large consumers with output pressure in the range of 300 / 500 mbar to 2 bar. Some typical small commercial meter/ regulator service arrangements are shown below:

Refer Schematic diagram of terminal at large commercial consumer end in Annexure-III-G.

06.07 Instrumentation and Control

Control Philosophy

Instrumentation and control system has been envisaged for smooth, efficient and trouble free transportation of natural gas from CGSs to the distribution networks. This will be achieved through measurement of inlet/outlet gas

300/500 mbar min. outlet pressure

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pressure and temperature, metering and control of gas flow through pipeline at CGS. All the instruments shall be microprocessor based electronic type with 4-20mA DC isolated output. Final control element shall be gas-actuated type. Instrument power supply shall be based on 230V, 50Hz AC through UPS. For instruments in the CGS, apart from local gauges all indications, control, recording and valve status indications shall be provided in a control panel in the local control room at the CGS. Gas flow metering and control shall be skid based. For SV stations, the line pressure and temperature indications shall be local only.

06.08 Electrical

The electrical load shall comprise of mainly lighting load, instrumentation power

requirements, at all locations and air conditioning, UPS, Electric Compressors, Submersible Pump and Dispensers at CGS, mother & daughter stations.

The design and selection of electrical equipment for power distribution, drive

motors, their controls and illumination system for buildings and other process areas has been envisaged to ensure high reliability & safety in operation. Equipment available indigenously and incorporating required features with proven reference in similar fields of application shall be used.

06.09 Disaster Management Plan

Though all precautions shall be planned for safe operation of the unit, possibilities of accidental situations arising cannot be ruled out. In view of this, it is imperative to prepare a Disaster Management Plan to serve as a guideline at the time of emergency to help all concerned to handle the same as quickly as possible in order to prevent or reduce suffering of consumers as well as damage to property & equipment of the Company. This shall also help in imparting knowledge of potential hazards and facilities available for controlling the same in a well co-ordinated manner to all the employees and also train them before hand.

06.09.01 Objective of Plan

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The main objectives of the plan are to take immediate actions to meet any emergency situation by making maximum use of combined resources for the most effective, speedy and efficient rescue and relief operations. These are briefly enumerated below:

i) Cordon and isolate the affected area for smooth rescue operations. ii) Ensure restoration of gas supply/ services at the earliest possible time. iii) Rescue and treat causalities and safeguard the rest. iv) Minimise damage to person, property and surroundings. v) Contain and ultimately bring the situation under control. vi) Secure and safe rehabilitation of the affected area. vii) Provide necessary information to statutory agencies. viii) Provide authoritative information to the news media. ix) Ward off anti-social elements and prying onlookers. x) Counter rumour mongering and panic by providing relevant accurate

information. xi) Protect the Company from adverse publicity.

06.09.02 Emergency Plan

For effective and easy communication, it is recommended that the Company establish a “One Call” telephone number at the commencement of operations. This “Toll Free” number should be easy to remember and widely advertised as the “Dial before dig” “point of contact” with the Company when reporting a suspected gas leak, gas escape, service difficulty, or when making a safety inquiry. All construction companies and public authorities should use this facility when making inquiries about the location of gas mains and buried apparatus which may be present near any proposed construction site.

The telephone call to the Company, supplemented by on site assistance to locate mains will allow general construction activity to proceed safely and avoid the risk of accidental damage to gas assets. In addition, this telephone number can be used by consumers for reporting accidents or during emergency.

06.09.03 Emergency Alert Levels

The Disaster Management Plan shall consist of Emergency response plans. The Emergency Response Plan consists of three levels of incremental response

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to incidents depending on the seriousness of the incident, its possible impact and the level of resources and expertise necessary to overcome the event.

Alarm Level 1

The incident can be capably dealt with by local site resources without further support. The incident has not resulted in personal injury and agencies outside the company are not involved. No adverse publicity will be attracted by the company.

This level of Alarm will be managed by the relevant Assistant Manager as within normal operational duties.

Alarm Level 2

The incident may have environmental consequences, result in some local loss

of supply until repaired, may have some business continuity impact and may attract some adverse publicity for the company.

This Level requires the appointment of a Site Controller. The Manager is responsible to declare a Level 2 Alarm and to either declare himself Emergency Manager or nominate another.

Alarm Level 3

The incident has already caused injury, or there is a substantial risk of personal

injury or death occurring. There is a high potential for adverse publicity for the company or significant environmental impact may occur. A significant loss of supply may result with a serious impact on business continuity, telephone or cable loss may impact on information transfer or other utilities or electrical supply may be at risk.

An incident of this severity requires the Manager to declare a Level 3 Alert. The concerned General Manager must be advised and the Management Response and Site Emergency Response Teams mobilised.

06.09.04 General Emergency declared by State Emergency Services (SES)

The development of a Disaster Plan by State Authorities in preparation for serious incidents (eg. crash of an airliner in the city, earthquake), will require the

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company to co-operate with all other bodies brought together by SES to achieve the best collective outcome.

If such a Plan is already in place, the company shall take steps to have the effects of a reticulated gas system on the planned response actions incorporated so that the best possible response can be undertaken.

The company will co-operate with State Authorities to prepare, or contribute to,

a State Disaster Response Plan that will provide the maximum possible degree of human safety and protect public and Company assets in view of the possible threats.

06. 10 Bill of Materials (BOM)

A broad bill of materials for all piping, mechanical, instrumentation & electrical items described earlier in this chapter is listed as Annexure - II

CHAPTER – 7

IMPLEMENTATION SCHEDULE

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H:\rajesh\Market Survey\TTZ\Final\Chapter - 07 -Implementation.doc 07-1/7 © 2009 MECON Limited. All Rights Reserved

07.00 IMPLEMENTATION SCHEDULE

07.01 General

The overall project comprising the CNG & PNG facilities including laying of main grid and MDPE Network in Taj Trapezium Zone area is envisaged to be implemented over a period of 25 years in a phased manner taking into account year-wise planning of infrastructure development in line with growth in demand for PNG and CNG in various segments. Following are the salient points of the Implementation Schedule: The development of MDPE network has been taken as an activity to

continue during entire period of 25 years. Further, in order to achieve the target of providing maximum possible number of domestic connections right from 1st year, the simultaneous working for development of MDPE Network and Main Grid line has been envisaged.

Adequate infrastructure for catering to CNG requirement is planned

considering peak load demand and installation of sufficient number of compressors, dispensers, cascades etc. to ensure no interruption in CNG dispensing.

The Steel grid line of 10”/8”/ 6”/4” to connect CNG station along with

required number of DRSs, has been planned to be completed mostly in first year itself.

Most of the industrial units in and around Firozabad area shall be fed

from steel pipeline however in some of the cases the same shall be done with DRSs, thereafter with MDPE pipeline to individual industrial units. Even the comparatively larger industrial units may also be connected through MDPE. Consumers in the major industrial areas located in Firozabad, Hathras, Bharatpur etc. shall be taken up for connection.

The implementation plan envisages achieving following targets in

first five years that is the period of exclusivity as per PNGRB

guidelines:

The 10”/8”/ 6” dia Steel Pipe Line of length 142.8 Km (1065 Inch-KM).

Approx. 63600 nos. of Domestic connections through MDPE Network

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Infrastructure to provide 0.0023 MMSCMD of PNG to different

commercial consumers located in charge areas of TTZ through MDPE Network.

Infrastructure to compress and dispense 0.05 MMSCMD of CNG. Infrastructure to provide 0.87 MMSCMD of PNG to different industrial

units located at Firozabad, Hathras, Bharatpur etc. Following are the targets to be achieved in first ten years:

Approx. 88000 nos. of Domestic connections through MDPE

Network. Thus by the end of 10th year the MDPE/GI pipe network shall be developed to cater about 75% of total projected domestic demand for the 25th year.

MDPE Network to provide 0.0027 MMSCMD of PNG to different

commercial consumers located in TTZ. This will constitute about 64% of total projected commercial demand for the 25th year.

CNG related Infrastructure to compress and dispense 0.187

MMSCMD of CNG. By 10th year, about 57% of total projected CNG demand for the 25th year.

Network (MDPE) to provide 1.27 MMSCMD of PNG to different

industrial units located at Firozabad, Hathras, Bharatpur etc which is about 63% of the total proposed infrastructure for 25 years.

The period beyond 10 years is too long for judging accurate scenario of natural gas demand, as this period may witness presence of different modes of Public transport and other technological developments. The period may also have presence of other players with access to the developed infrastructure and as competitors sharing the present natural gas market. Thus the period beyond 10 years involves a considerable degree of uncertainty and as such the implementation schedule under this Period may need updating in future. Indicative implementation schedules as proposed for different activities have been given in Figure 07.01 for the 25 years. Activities for all the above areas shall commence from zero date after appointment of project consultant.

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Following are the set of activities involved in development of City Grid line, CNG Stations and City Gas Distribution:

a). Construction of City Gate Station & City Grid line:

i) Route survey of Pipeline ii) ROU acquisition for the gridline iii) Design of facilities at City Gate Station proposed at Tap-off point

location iv) Basic & detailed engineering v) Procurement of free issue items for gridline vi) Award of works contract for Grid line vii) Construction of Grid line viii) Commissioning of grid line

b). Construction of CNG stations:

i) Survey the plots / existing OMC ROs ii) Basic & detailed engineering iii) Procurement of compressors & other free issue items iv) Statutory approvals & land acquisition v) Award of works contract for CNG Stations vi) Construction of boundary wall, building, canopy vii) Dispenser erection viii) Compressor erection ix) Unloading platform erection x) Cascade erection xi) Electrical works xii) Commissioning

c) City Gas Distribution:

As mentioned in earlier chapters, the City gas Distribution work in different phases shall primarily comprise installation of required numbers of DRSs and development of MDPE Network. The construction of city gas distribution network shall include following activities: i) Survey & land acquisition ii) Basic & detailed engineering iii) Award of work contract

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iv) Procurement of free issue items v) DRS erection vi) Laying of PE pipeline vii) Laying of GI/Copper pipe viii) Testing & commissioning The procurement of free issue items in different years shall tentatively be taken up in different years namely 1st year to 3rd year, 6th year to 9th year, 11th to 14th year,16th,17th,20th to 23rd year to augment the infrastructure in line with increase in demand. The steel grid line development shall be completed in first year itself.

07.02 Assumptions

a) It is assumed that all the required statutory approvals shall be obtained

as per schedule b) It is assumed that the ROU for laying City grid pipeline route and land

acquisition for CNG station, DRS & SV Stations etc. shall be taken as per given schedule.

c) Finalization of engineering consultant shall be considered as the ‘ZERO’

date. d) All statutory approvals shall be taken in time as per schedule. e) Agreement for installation of CNG Daughter Booster Stations at retail

outlets of the oil companies will be executed in time. 07.03 Recommendations

The proposed project shall be implemented under the overall responsibility of

the owner who shall obtain necessary technical services from an engineering consultant in the areas of basic design, detailed engineering, procurement of major equipment and materials, selection of suitable vendors and contractors, construction supervision, commissioning assistance and project management.

The city grid line construction along with erection of free issue items, erection of CNG stations and City Gas Distribution system shall be given to competent contractors, preferably an EPC agency, who shall complete the works as per project schedule. All major/ critical equipment and materials will be procured by

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the owners directly, as this shall ensure the quality of equipment / material as well as their availability in time

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CHAPTER – 8

ORGANISATION STRUCTURE & MANPOWER PLANNING

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H:\rajesh\Market Survey\TTZ\Final\Chapter - 08 - Manpower.doc 08-1/5 © 2010 MECON Limited. All Rights Reserved

8.00 ORGANISATION STRUCTURE & MANPOWER PLANNING

8.01 Introduction

The organization structure detailed in the following paragraphs defines the

overall responsibilities for successful implementation of the project, which entails execution of Pipeline Grid along with PNG and CNG facilities at various locations like Firozabad, Bharatpur, Hathras, Vrindavan etc. within the Geographical Area of Taj Trapezium Zone and smooth functions of the complete set of facilities.

8.02 Organization and Functions

The organization’s primary objective shall be safe, profitable and reliable supply of natural gas to consumers of different segments. A suitable organisation structure, both for project implementation and operation & maintenance, has been worked out and shown in Figures 8.01 & 8.02 respectively, detailing the number of personnel required and their respective organisational functions. Initially, the organization shall need to focus on construction and installation of the Steel grid pipeline, CNG dispensing facilities and provide PNG distribution system for domestic, commercial and industrial units in the city. Therefore, planning, laying of steel grid and MDPE network, erection of Metering Skids, DRS and compressors along with other associated construction/erection work shall be the main activities. As the providing PNG connections to households, commercial and industries shall continue during entire period of 25 years, the proposed organisational structure shall more or less be same during entire period with addition of manpower as per requirement. Further, there shall be a need for operation & maintenance of pipelines, meters, regulator sets, CNG stations and associated facilities. Additional resources shall also be required in the areas of meter reading, billing and general customer services. The proposed structure also caters for the work change requirements anticipated as the organization grows.

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8.03 Manpower Requirement

8.03.01 For Project Implementation

Keeping in view the vast area covered by TTZ Geographical Area, the project

work has to be taken up in various locations simultaneously. This will require at least three dedicated teams for Grid line as well as for CNG & City Gas. The organisational set-up for project implementation for the Project shall be headed by a Dy. General Manager (Projects) who shall be assisted by six Managers dedicated for Grid line and CNG & City Gas. They inturn shall be assisted by adequate number of Assistant Managers and staff members having the required skills to look after the distinct functions assigned to them (Refer Figure 8.01), namely, Grid pipeline and associated facilities Contracts & Procurement CNG & City Gas Distribution Administration & Finance Safety Stores

The total project shall be taken up as comprising following two distinct areas: Grid Pipeline and PNG networks

CNG and associated facilities

Hence, there shall be dedicated project implementation teams for these two areas which shall report to Dy. General Manager (Projects). The project implementation group will function under an organisational set-up located at Firozabad. Services of an Engineering & Project Management Consultant and a Third Party Inspection Agency are also envisaged during project implementation period. There shall also be manpower for common areas like contracts & procurement, finance and administration etc.

8.03.02 For Operation and Maintenance

The Organisational Set-up for Operation and Maintenance is planned as detailed in Figure 8.02.

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The requirement of manpower has been worked out keeping in view the

proposed locations of CNG dispensing facilities (Mother Stations, On-line Stations) and Grid Pipeline at various cities inside TTZ. It is proposed that a unified O & M mechanism headed by a Dy. General Manager and supported by Managers, Assistant Managers for Operation and Maintenance, Safety, Stores and Logistics, Administration & Finance. Further, adequate number of supervisors, Assistants and Attendants would look after Operations & Maintenance of following distinct areas, namely:

Grid Pipeline and PNG networks CNG and associated facilities

The officers upto managerial level shall be from GAIL Gas Ltd. and manpower

requirement from Supervisors and below ranks may be taken on contract basis.

The officers working for project implementation shall subsequently be engaged in overall operations of CNG and PNG distribution facilities.

It is further proposed that the services be out-sourced where ever possible, i.e. services be contracted as required rather than employed as permanent staff, particularly in the field of O&M, meter reading and account remittance, etc. However, there shall be a requirement for a small permanent core group with expertise to carry out work, supervise and ensure quality control on work performed by contractors.

Such an arrangement shall provide flexibility to the organisation to contract

appropriately skilled personnel, as the skill requirement changes as the organization expands and customer base grows.

The number of contract crews for CNG installation, mainline laying, services laying and customer connections & conversions shall be proportional to the rate of new connections.

8.04 Training

Appropriate training, both classroom and on-the-job, shall be required to ensure

that construction technicians, installers and appliance converters are competent and able to perform the required work safely.

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Instructors experienced in specific areas of the gas industry shall be used to train personnel.

The resources required shall depend on the rate of natural gas connections and

the consequent number of gas conversion staff.

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ORGANISATION SET-UP FOR PROJECT IMPLEMENTATION

Note: During Project Implementation, services of the following is

envisaged 1) Engineering & Project Management Consultant • Third Party Inspection Agency • Outsourcing of services for CNG Stations, PNG

Services & Stores

FIGURE - 08.01

Dy. General Manager

Manager CNG-3

Supervisor-3 (Stores, Inventory &

Logistics)

Asst. Manager (C & P)-1

Assistant-1

Assistant Manager (F & A)-1

Assistant-1

Attendant-3

Supervisor (Steel Grid)-3

Attendant-3

Assistant-3

Manager (Steel Grid & City Gas

and Safety)-3

Assistant (Safety)-3

ORGANISATION SET-UP FOR OPERATION & MAINTENANCE

Note: During Project Implementation, services of the following is

envisaged 1) Engineering & Project Management Consultant

• Third Party Inspection Agency

• Outsourcing of services for CNG Stations, PNG Services & Stores

FIGURE - 08.02

Dy. General Manager

Manager (CNG)-6 nos.

Supervisor (DRS & PNG)-4

Supervisor (Maintenance)-3

Supervisor (Operation)-3

Manager (Contracts & Procurement ) -

2

Asstt. (C&P)-2

Asstt. Mgr. (Finance)-2

Assistant (Finance)-2

Assistant (Projects)-4

Supervisor (Steel Grid)-3

Assistant (Projects)-3

Supervisor (Stores,

Inventory & Logistics)-2

Attendant-2

Manager (Steel Grd. & PNG

and Safety)-4

Asstt. Mgr. (Admin)-2

Assistant (Admin)-1

Assistant (Operations)-3

Assistant (Maintenance)-3

CHAPTER – 9

CAPITAL COST ESTIMATE

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H:\rajesh\Market Survey\TTZ\Final\Chapter - 09-Capital Cost.doc 09-1/8 © 2010 MECON Limited. All Rights Reserved

09.00 CAPITAL COST ESTIMATE

09.01 General

Capital cost based on the facilities envisaged for steel gridline, online stations and city gas distribution network including charges for domestic, commercial and industrial connections are estimated as Rs.465.34 crores. The total cost of project is summarised in Table -09.01.

09.02 Major Facilities

Major facilities included in the capital cost estimates are given below:

Sl.

No.

Description Details

I) Grid Line in metres 10” x 6.4 mm Steel Pipeline 47700 m 8 x 6.4mm Steel Pipeline 49000 m 6” x 6.4mm Steel Pipeline 800m 4”x 6.4mm Steel Pipeline 45300m

II) CNG Compressors in Nos. Mother Compressors 1200 SCMH – Gas driven 21 Mother Compressors 650 SCMH – Gas driven 3 Daughter Booster Stn. –250 SCMH Electric Driven 26 Cascades-4500, 3000 & 2200 WL 89 Car/Auto dispensers 72 Bus dispensers 23

III) City Gas Distribution MDPE Pipe in Kilometres 180 mm dia. 71.9 125 mm dia. 143.9 63 mm dia. 323.7 32 mm dia. 719.3 20 mm dia. 599.4

Costs toward technological equipment, associated electrics, spares, erection, civil engineering works, land and ROU are included in the estimate. The estimates are based on the prices for different cost elements prevailing during 2nd quarter of 2010 and do not include any provision for future escalation.

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The break up of capital costs under major heads such as equipment, spares, civil engineering works, erection, duties & taxes, transportation and engineering, supervision, project management etc., for CGS, City Gas Distribution and CNG Stations are furnished in Table - 09.02 to 09.04.

09.03 Assumptions

Following assumptions have been made for working out the capital costs.

09.03.01 Land and ROW/ ROU Compensation

The cost of land for citing SV stations has been considered at a rate of Rs. 10000 per sqm. The cost towards Right of Way (ROW) has been considered as Rs. 3 lakhs per km for required width for the entire length of steel pipeline.

09.03.02 Equipment

The costs of equipment, in some areas, are based on LOA/ budgetary offers. However, generally, in house information for equipment installed in other projects has been used. The cost of equipment under this head is on ex-works basis.

09.03.03 Spares

Provision for spares required for 2 years normal operation has been made equivalent to 5% of equipment cost excluding steel grid pipeline.

09.03.04 Civil engineering works

Cost estimates for civil engineering works have been worked out based on preliminary layout and design of grid line and route survey and rates generally prevailing for similar work in the area.

09.03.05 Erection

Provision towards erection of equipment has been made on the basis of erection rates as prevailing in the region.

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09.03.06 Freight, insurance, duties and taxes

For equipment provision for excise duty @10.3%, Central sales tax @10%, inland freight & transit insurance @2% has been made. Service tax @10.3% has also been considered on cost of Engineering, Supervision etc.

09.03.07 Engineering, Supervision and Project Management

A provision has been made towards engineering, supervision and project management services etc., at the rate of 5% for grid line, city gas distribution and CNG Stations. This includes detailed engineering including preparation of drawings, technical specifications, preparation of tender documents and assistance for award of contracts, designer’s supervision, project management services and temporary power and water facilities, etc.

09.03.08 Owner’s Management Expenses

Provision towards owner’s management expenses have been kept at the rate of 3%. This includes preliminary and pre-operative expenses.

09.03.09 Contingencies

A provision of 5% of the project cost has been made towards contingencies to take care of the unforeseen aspects of the estimate.

09.03.10 Time Schedule

The Time Schedule for construction of various facilities for the proposed project would be as per implementation schedule given in earlier chapter.

09.03.11 Financing

It has been assumed that the project cost would be financed in the debt: equity ratio of 60:40. Interest rate on long term loan has been considered 10.5% per annum.

09.03.12 Connection Charges Provision for connection charges has been made in the Capex @ Rs 8000 per connection for total 117200 domestic connections. In case of commercial and industrial connections it has been assumed that full expenses towards connection shall be realised from the consumers. Therefore, no provision for

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these charges has been kept in the estimates. Interest free deposit of Rs. 5000 per connection for domestic connections has been considered as refundable advance. This amount has to be refunded at the end of project life as shown in the Cash Flow Statement.

09.04 Phasing of Expenditure

Phasing of capital expenditure before interest during construction for the project as Rs.43756.3 Lakhs has been worked out on the basis of implementation schedule. The same is shown year-wise and given below.


Cost in Lakh Rs

15007.8 3858.1 3628.2 3838.1 3045.5


Cost in Lakh Rs

269.9 635.6 1439.8 575.6 2151.7


Cost in Lakh Rs

449.8 575.6 567.6 695.5 419.8


Cost in Lakh Rs

725.5 509.8 935.4 809.6 1122.7


Cost in Lakh Rs

913.4 643.9 359.8 389.8 187.9

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CHAPTER – 10

OPERATING COST

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H:\rajesh\Market Survey\TTZ\Final\Chapter - 10-Operating Cost.doc 10-1/5 © 2010 MECON Limited. All Rights Reserved

10.00 OPERATING COST

10.01 General

The annual operating costs for the project at 100% capacity is given below

Annual Operating Cost

(Rs. in Lakhs)

Sl.

No.

Item CGS &

Grid Line

Online

Station

City gas

Distribution

Total

A. Variable Cost

1. Electric Power 0.00 217.25 0.00 217.25

2. Diesel 0.00 47.51 0.00 47.51

3. Gas for compressors 0.00 815.56 0.00 815.56

4. Consumables 99.35 0.00 0.00 99.35

Sub-Total (A) 99.35 1080.32 0.00 1179.67

B. Fixed Cost

1 Manpower 96.79 152.10 110.62 359.51

2 Overheads 16.00 128.00 128.10 272.00

3 Repair & Maintenance

125.95 631.28 185.35 942.58

4 Insurance 15.11 15.15 22.24 52.50

5. Wet lease for LCV’ s 0.00 234.00 0.00 234.00

6. AMC for compressors

0.00 366.00 0.00 366.00

Sub-Total (B) 253.85 1526.53 446.21 2226.59

Total (A+B) 353.19 2606.85 446.21

3406.26

The various parameters considered for computing the operating costs are

described in the following paragraphs. Year wise operating cost have been furnished in table no. 10.01

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10.02 Cost of Energy

Electric energy has been considered for CNG Stations and for operation of Electric Motor driven CNG Compressors. The energy cost @ Rs.5/KWH has been considered. In case of Gas Engine driven CNG Compressors, the gas cost has been taken @ Rs.12.25 per SCM. Further, Diesel for Gen. Sets has been considered @ Rs 32.54/litre.

10.03 Water

Since the water requirement of the project would be negligible, no separate cost towards same has been considered in the operating cost estimate.

10.04 Manpower

Based on salary structure and number of personnel required, direct cost on account of manpower has been taken as Rs. 6.91 lakh per person on average basis. It has been assumed that out of total man power of 52 personnel around 17 would be permanent with average annual salary of Rs 16 lacs and rest will be contract employees. Indirect cost towards overheads has been considered equivalent to 100% of permanent employee’s salaries. Following salary & wage structure (including fringe benefits) has been considered for different category of personnel. In addition, wages for contract labour has also been taken as shown in the operating cost estimate.

Sl.

No.

Category Number Annual Salary

(Rs./ man

year)

1. Dy. General Manager 11 1600000 2. Manager 12 1600000 3. Asst Manager 4 1600000 4. Supervisors 15 250,000 5. Assistant 18 250,000 6. Attendants 2 250,000

Total 52

10.05 Repair & Maintenance

Provision for repair and maintenance has been kept at the rate of 1% of the capital cost for Steel Grid Line and City Gas Distribution and 5% for CNG

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stations. Since the useful life for compressors and dispensers has been considered as 15 years, AMC has also been taken in addition to 5% of capital cost taken for repair & maintenance for compressors and dispensers.

10.06 Insurance

Insurance cost at the rate of 0.12% of the capital cost has been considered in the operating cost estimates

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YEAR WISE OPERATING COSTS Table-10.01

Item Unit Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12

Power Lakh Rs 87.6 87.6 87.6 87.6 162.1 162.1 162.1 170.8 170.8 212.9 212.9 212.9

Gas Lakh Rs 143.1 143.1 143.1 143.1 250.4 250.4 286.2 357.7 393.5 472.2 472.2 507.9

Fuel Requirement Diesel Lakh Rs 23.8 23.8 23.8 23.8 29.7 29.7 29.7 41.6 41.6 41.6 41.6 41.6

Consumables Lakh Rs 8.6 21.9 32.0 38.5 49.3 51.6 54.0 57.7 61.8 63.6 65.8 67.8

Manpower Lakh Rs 100.8 201.5 201.5 243.5 280.5 280.5 280.5 280.5 301.5 306.5 306.5 306.5

Manpower Overheads Lakh Rs 72 144 144 176 208 208 208 208 224 224 224 224

Repair & Maintenance & Insurance

Lakh Rs 165.4 374.0 414.7 457.7 599.4 602.4 620.5 678.7 696.1 781.6 786.7 804.1

AMC for compressors and wet lease for LCVs

Lakh Rs 84 168 168 168 324 324 336 360 372 480 480 492

Total Lakh Rs 685.2 1163.8 1214.6 1338.1 1903.3 1908.6 1977.0 2155.0 2261.3 2582.4 2589.5 2656.8

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Item Unit Yr 13 Yr 14 Yr 15 Yr 16 Yr 17 Yr 18 Yr 19 Yr 20 Yr 21 Yr 22 Yr 23 Yr 24

Power Lakh Rs 212.9 212.9 212.9 212.9 212.9 212.9 212.9 212.9 217.2 217.2 217.2 217.2

Gas Lakh Rs 529.4 565.2 565.2 600.9 600.9 636.7 636.7 744.0 779.8 815.6 815.6 815.6

Fuel Requirement Diesel Lakh Rs 41.6 41.6 41.6 41.6 41.6 41.6 41.6 41.6 47.5 47.5 47.5 47.5

Consumables Lakh Rs 69.9 72.1 74.3 76.7 79.2 81.8 84.5 87.2 90.1 93.1 96.0 99.3

Manpower Lakh Rs 306.5 322.5 322.5 322.5 341.0 341.0 341.0 341.0 359.5 359.5 359.5 359.5

Manpower Overheads Lakh Rs 224 240 240 240 256 256 256 256 272 272 272 272

Repair & Maintenance & Insurance

Lakh Rs 816.4 835.2 839.9 859.1 864.8 886.3 895.4 936.1 968.4 984.6 988.6 995.1

AMC for compressors and wet lease for LCVs

Lakh Rs 504 516 516 528 528 540 540 576 588 600 600 600

Total Lakh Rs 2704.6 2805.4 2812.4 2881.7 2924.3 2996.2 3008.0 3194.7 3322.5 3389.5 3396.5 3406.3

CHAPTER – 11

FINANCIAL ANALYSIS

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H:\rajesh\Market Survey\TTZ\Final\Chapter - 11-Financial Evaluation.doc 11-1/22 © 2010 MECON Limited. All Rights Reserved

11.00 FINANCIAL ANALYSIS

11.01 General

The financial analysis of the project has been carried out based on the capital cost and operating cost as elaborated in Chpaters-09 & 10 respectively and the purchase price of the gas delivered at the tap-off and finally to consumers of the gas for the project. Compression charges and Transportation Tariff with post tax IRR of 10% has been calculated and given in Tables 11.01 and 11.02. Profit & Loss Statement, Cash flow Statement and Balance Sheet have been projected for the project life of 25 years and given in Table-11.03 to Table-11.05. Payback period, Debt-service coverage ratio and Break-even capacity have been calculated and given in Tables 11.06 to 11.08. Salient financial indices for the project are given below.

Sl. No.

Description Unit Amount

1. Compression Charges Rs/ Kg 4.07 2. Transportation Tariff Rs/ MMBTU 27.14 3. Post-tax IRR on Capital employed % 23.6 4. Pre-tax IRR on Capital employed % 27.8 5. Payback period Years 8.8 6. Debt-service coverage ratio Times 2.54 7. Break-even capacity % 26.4 8. Cash break-even capacity % 15.6 9. NPV (post-tax) @10% discount for the project Rs.lakhs 40990.4

11.02 Assumptions

Major assumptions considered for financial analysis are given below:- i) Year wise gas volume considered for sale is as follows:-

(In thousand SCM)


Annual gas volume

(Construction

period)

38161 194109 284025 342398


Annual gas volume

437849 458255 479906 513303 548704

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Annual gas volume

567349 584214 602288 621117 640392


Annual gas volume

660646 681756 703743 726704 750446


Annual gas volume

774867 800777 827019 854042 882714

ii) Gas purchase cost as indicated by M/s GAIL Gas has been considered as Rs 12.50/SCM for automobile & domestic consumers and Rs.18.00/SCM for industrial & commercial consumers.

iii) The following net selling prices have been considered for working out the profit

& loss and cash flow statements for the project: Domestic consumers: Rs 18.00/SCM Commercial consumers: Rs 23.00/SCM Industrial consumers: Rs20.00/SCM CNG consumers: Rs 23.00/SCM (Rs 28.61/Kg)

The above selling prices for different consumers have been arrived at on the basis of equivalent selling prices of alternative fuels prevailing in the region.

iv) Working capital requirement for the project has been considered equivalent to 3

months’ operating expenses. v) Implementation Schedule is as given in earlier Chapter. vi) Project life has been considered as 25 years from the date of authorisation for

the project. vii) Salvage value equivalent to 5% of the project cost has been considered at the

end of the economic life of the project.

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viii) Corporate tax has been considered @33.99%.

ix) All estimates are based on the prices prevailing in 2nd quarter of 2010 and no future escalation has been considered.

x) The project would be financed in the debt: equity ratio of 60:40.

xi) It has been considered that an interest free deposit of Rs 5000 per connection

from domestic consumers shall be taken. This amount shall be refunded at the end of the project life and same is shown in the Cash Flow Statement.

xii) Regulated tariffs i.e. Compression charges and Transportation tariff have been

calculated with post tax IRR of 10% on regulated investments. 11.03 Comparison of price with other fuels

Selling prices of CNG and PNG as worked out above have been compared with alternative fuels as given below. Comparison of CNG/PNG Prices with Other Fuels

Fuels Unit Price, Rs/Unit

Equivalent NG Price,

Adopted NG price incl. duties & taxes

Automobile

Sector

CNG, RS/Kg CNG, Rs/Kg

Petrol Rs/litre 51.00 46.41 37.14

Diesel Rs/litre 39.20 39.20

37.14

Industrial

Sector

PNG, Rs/SCM PNG, Rs/SCM

FO Rs/l 32.00 27.81 22.70

Domestic &

Comml. Sector

PNG, Rs/SCM PNG, Rs/SCM

LPG-Domestic Rs/Kg 24.30 22.09 20.25

LPG-Commercial

Rs/Kg 52.63 45.77 25.88

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To arrive at the equivalent CNG & PNG prices, following considerations have been made. i) 1 Litre of Petrol = 0.91 Kg of CNG ii) 1 Litre of Diesel = 1.00 Kg of CNG iii) 1 Litre of Furnace oil = 1.153 SCM of PNG iv) 1 Litre of LPG = 1.30 SCM of PNG v) Excise duty and VAT, for CNG; have been considered @ 10.3% and

13.5% respectively. In addition dealer’s commission including VAT has also been added @ Rs 1.20 per kg of CNG.

vi) VAT @ 13.5% has been considered for PNG

11.04 Sensitivity Analysis

Sensitivity analysis for the project has been carried out for increase/decrease of capital cost, operating cost, selling price, gas purchase price and gas volume by 10%. Compression charges, Transportation tariff and IRR (post tax) for the project have been worked out with changed parameters to assess sensitivity of the project under different scenarios and presented in Table-11.09.

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COMPRESSION CHARGES Table-11.01

Item \ Year Unit 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th

Annual quantity of gas sold TSCM 0 1259 5037 7556 13432 16790 23506 30642 48691 68167 72197 73876

Capital investment Rs lakh 997 0 0 0 639 0 196 620 196 435 0 196

Annual gas cost Rs lakh 0 0 0 0 0 0 0 0 0 0 0 0

Annual operating cost Rs lakh 0 303 445 445 514 694 694 752 888 983 1120 1120

Annual working capital requirement Rs lakh 0 76 35 0 17 46 0 14 34 24 34 0

Total outflow Rs lakh 997 379 480 445 1170 740 890 1386 1118 1442 1154 1315

Annual revenue inflow Rs lakh 0 40 160 240 427 533 746 973 1546 2165 2293 2346

Net inflow Rs lakh -997 -339 -320 -205 -743 -207 -143 -413 429 723 1139 1031

Internal Rate of Return (IRR) - Pre-tax 15.15%

Year-wise Comp. Charges (Rs/SCM) 30.067 9.522 5.885 8.710 4.408 3.786 4.523 2.296 2.115 1.598 1.781

Year-wise Comp. Charges (Rs/Kg) 38.156 12.084 7.468 11.054 5.594 4.804 5.740 2.913 2.684 2.028 2.260

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Cont….. Table-11.01

Item Unit 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th

Item \ Year Unit 76395 78913 81431 84279 87308 90666 94024 97382 101160 105777 109975 114172 119209

Annual quantity of gas sold TSCM 120 196 0 196 0 196 0 587 303 196 0 0 -254

Capital investment Rs lakh 0 0 0 0 0 0 0 0 0 0 0 0 0

Annual gas cost Rs lakh 1177 1217 1275 1275 1333 1333 1390 1390 1564 1631 1689 1689 1689

Annual operating cost Rs lakh 14 10 15 0 14 0 15 0 43 17 14 0 0

Annual working capital requirement Rs lakh 1311 1423 1290 1471 1347 1528 1405 1978 1910 1844 1703 1689 1436

Total outflow Rs lakh 2426 2506 2586 2676 2773 2879 2986 3093 3213 3359 3492 3626 3786

Annual revenue inflow Rs lakh 1115 1083 1296 1206 1426 1351 1581 1115 1302 1515 1789 1936 2350

Net inflow Rs lakh

Internal Rate of Return (IRR) - Pre-tax 15.15% 1.716 1.803 1.584 1.745 1.542 1.686 1.495 2.031 1.888 1.744 1.549 1.480 1.204

Year-wise Comp. Charges (Rs/SCM) 2.178 2.288 2.010 2.214 1.957 2.139 1.897 2.577 2.396 2.213 1.965 1.878 1.528

Year-wise Comp. Charges (Rs/Kg)

GAIL GAS



M E C O N


TRANSPORTATION TARIFF Table-11.02

Item Unit 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th

Annual quantity of gas sold TSCM 0 38161 194109 284025 342398 437849 458255 479906 513303 548704 567349 584214

Capital investment Rs lakh 10050 3858 3628 3838 356 270 360 390 300 617 450 300

Annual gas cost Rs lakh 0 0 0 0 0 0 0 0 0 0 0 0

Annual operating cost Rs lakh 0 148 344 395 450 533 539 545 553 561 574 582

Annual working capital requirement Rs lakh 0 37 49 13 13 21 2 1 2 2 4 1

Total outflow Rs lakh 10050 4043 4021 4246 818 824 900 936 855 1180 1028 882

Annual revenue inflow Rs lakh 0 349 1777 2600 3134 4008 4195 4393 4699 5023 5194 5348

Net inflow Rs lakh -10050 -3694 -2245 -1646 2316 3184 3295 3457 3844 3843 4166 4466

Internal Rate of Return (IRR) - Pre-tax 15.15%

Year-wise Tariff (Rs/SCM) 10.595 2.072 1.495 0.239 0.188 0.196 0.195 0.167 0.215 0.181 0.151

Year-wise Tariff (Rs/MMBTU) 0.357 0.070 0.050 0.008 0.006 0.007 0.007 0.006 0.007 0.006 0.005

GAIL GAS



M E C O N


Cont……. Table-11.02

Item Unit 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th

Annual quantity of gas sold TSCM 602288 621117 640392 660646 681756 703743 726704 750446 774867 800777 827019 854042 882714

Capital investment Rs lakh 420 420 420 450 510 660 810 420 360 420 360 390 -1315

Annual gas cost Rs lakh 0 0 0 0 0 0 0 0 0 0 0 0 0

Annual operating cost Rs lakh 587 594 633 640 647 690 700 711 719 760 768 775 785

Annual working capital requirement

Rs lakh 2 1 10 2 2 10 3 3 2 10 2 2 -95

Total outflow Rs lakh 1009 1014 1062 1091 1159 1359 1512 1134 1081 1190 1130 1167 -625

Annual revenue inflow Rs lakh 5513 5686 5862 6048 6241 6442 6652 6870 7093 7331 7571 7818 8081

Net inflow Rs lakh 4505 4671 4800 4956 5082 5083 5140 5736 6013 6141 6441 6651 8706

Internal Rate of Return (IRR) - Pre-tax

15.15%

Year-wise Tariff (Rs/SCM) 0.167 0.163 0.166 0.165 0.170 0.193 0.208 0.151 0.139 0.149 0.137 0.137 -0.071

Year-wise Tariff (Rs/MMBTU) 0.006 0.006 0.006 0.006 0.006 0.007 0.007 0.005 0.005 0.005 0.005 0.005 -0.002

GAIL GAS



M E C O N


PROFIT AND LOSS STATEMENT Table-11.03

Sl. YEAR OF OPERATION -->

1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th

No. ITEM

1 ANNUAL GAS COST- CNG 154.3 617.0 925.5 1645.4 2056.8 2879.5 3753.6 5964.6 8350.5 8844.1 9049.8 9358.3

ANNUAL GAS COST- PNG 6610.9 33907.0 49384.7 58565.4 75123.3 77568.5 80156.1 82891.3 85736.9 88344.6 91046.5 93825.5

ANNUAL OPERATING COST

a Consumables & Chemicals 8.6 21.9 32.0 38.5 49.3 51.6 54.0 57.7 61.8 63.6 65.8 67.8

b Utilities -(Power & Fuel) 254.4 254.4 254.4 254.4 442.1 442.1 477.9 570.1 605.9 726.6 726.6 762.4

c Salaries 100.8 201.5 201.5 243.5 280.5 280.5 280.5 280.5 301.5 306.5 306.5 306.5

d Repair & Maintenance 165.4 374.0 414.7 457.7 599.4 602.4 620.5 678.7 696.1 781.6 786.7 804.1

e Gen. Administrative Expences 72.0 144.0 144.0 176.0 208.0 208.0 208.0 208.0 224.0 224.0 224.0 224.0

g AMC for compressors & dispenses and wet lease for LCV 84.0 168.0 168.0 168.0 324.0 324.0 336.0 360.0 372.0 480.0 480.0 492.0

2 TOTAL ANNUAL OPERATING COST 685.2 1163.8 1214.6 1338.1 1903.3 1908.6 1977.0 2155.0 2261.3 2582.4 2589.5 2656.8

3 TOTAL MANUFACTURING EXPENSES 7450.3 35687.9 51524.8 61549.0 79083.3 82356.6 85886.7 91011.0 96348.6 99771.1 102685.9 105840.7

4 EXPECTED SALES 7661.0 38937.8 56921.5 68678.9 87864.1 92141.5 96678.2 103889.5 111546.8 115389.8 118802.1 122485.2

Revenue from compression charge (based on PIRR) 289.6 1158.5 1737.8 3089.4 3861.7 5406.4 7047.6 11198.9 15678.5 16605.3 16991.5 17570.7

Revenue from Network Tariff (based on PIRR) 7371.3 37779.3 55183.7 65589.6 84002.4 86735.1 89630.6 92690.5 95868.3 98784.5 101810.6 104914.5

Domestic 98.6 394.2 1189.2 2030.1 2089.3 2148.4 2227.2 2312.6 2378.3 2450.6 2549.2 2614.9

Commercial 14.3 67.2 167.9 167.9 173.8 184.7 193.1 193.1 193.1 201.5 201.5 201.5

Industry 7258.5 37318.0 53826.6 63391.6 81739.3 84402.1 87210.3 90184.8 93296.9 96132.4 99060.0 102098.1

5 OTHER INCOME

6 GROSS PROFIT BEFORE INTT. 210.6 3250.0 5396.7 7130.0 8780.8 9785.0 10791.5 12878.5 15198.2 15618.7 16116.3 16644.5

7 INTT. ON LONG TERM LOAN 613.1 1393.0 1504.3 1520.2 1327.1 1140.6 1004.7 805.9 703.7 475.9 313.4 261.7

8 INTERST ON BANK BORROWINGS 19.7 33.5 34.9 38.5 54.7 54.9 56.8 62.0 65.0 74.2 74.4 76.4

FOR WORKING CAPITAL

9 INTEREST ON OVER DRAFT 0.0 48.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

10 TOTAL FINANCIAL EXPENSES 632.8 1475.1 1539.2 1558.7 1381.9 1195.5 1061.5 867.8 768.7 550.2 387.8 338.1

GAIL GAS



M E C O N


Sl. YEAR OF OPERATION -->

1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th

No. ITEM

11 DEPRECIATION 1059.3 1263.1 1478.6 1649.6 1664.8 1700.4 1781.3 1813.6 1934.4 1959.7 1992.0 2023.9

12 OPERATING PROFIT -1481.5 511.8 2378.9 3921.7 5734.1 6889.1 7948.7 10197.0 12495.1 13108.8 13736.4 14282.5

13 PRELIMINARY EXPENSES WRITTEN OFF 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

14 PROFIT/LOSS BEFORE TAX -1481.5 511.8 2378.9 3921.7 5734.1 6889.1 7948.7 10197.0 12495.1 13108.8 13736.4 14282.5

15 PROVISION FOR TAXATION 0.0 0.0 143.7 399.9 1329.6 2039.5 2524.7 3339.2 4241.7 4441.6 4743.6 4999.2

16 PROFIT AFTER TAX -1481.5 511.8 2235.2 3521.8 4404.5 4849.5 5424.0 6857.8 8253.4 8667.2 8992.9 9283.3

17 DIVIDEND ON EQUITY 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

17 RETAINED PROFIT:

(i) CURRENT -1481.5 511.8 2235.2 3521.8 4404.5 4849.5 5424.0 6857.8 8253.4 8667.2 8992.9 9283.3

(ii) CUMULATIVE -1481.5 -969.7 1265.5 4787.3 9191.8 14041.3 19465.3 26323.1 34576.5 43243.7 52236.6 61519.9

Sl. YEAR OF OPERATION --> 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th

No ITEM

1 ANNUAL GAS COST- CNG 9666.8 9975.4 10324.1 10695.2 11106.6 11517.9 11929.3 12392.1 12957.7 13471.9 13986.1 14603.1

ANNUAL GAS COST- PNG 96732.0 99718.9 102822.8 106045.6 109363.2 112845.6 116458.1 120144.4 123952.0 127890.7 131974.0 136201.0

ANNUAL OPERATING COST

a Consumables & Chemicals 69.9 72.1 74.3 76.7 79.2 81.8 84.5 87.2 90.1 93.1 96.0 99.3

b Utilities -(Power & Fuel) 783.8 819.6 819.6 855.4 855.4 891.1 891.1 998.5 1044.5 1080.3 1080.3 1080.3

c Salaries 306.5 322.5 322.5 322.5 341.0 341.0 341.0 341.0 359.5 359.5 359.5 359.5

d Repair & Maintenance 816.4 835.2 839.9 859.1 864.8 886.3 895.4 936.1 968.4 984.6 988.6 995.1

e Gen. Administrative Expences 224.0 240.0 240.0 240.0 256.0 256.0 256.0 256.0 272.0 272.0 272.0 272.0

g AMC for compressors & dispenses and wet lease for LCV 504.0 516.0 516.0 528.0 528.0 540.0 540.0 576.0 588.0 600.0 600.0 600.0

2 TOTAL ANNUAL OPERATING COST 2704.6 2805.4 2812.4 2881.7 2924.3 2996.2 3008.0 3194.7 3322.5 3389.5 3396.5 3406.3

3 TOTAL MANUFACTURING EXPENSES 109103.5 112499.6 115959.3 119622.5 123394.1 127359.8 131395.4 135731.2 140232.3 144752.0 149356.5 154210.4

4 EXPECTED SALES 126317.4 130238.9 134366.0 138668.9 143154.6 147832.7 152662.1 157650.4 162962.3 168327.5 173849.2 179725.2

Revenue from compression charge (based on PIRR) 18150.0 18729.2 19384.1 20080.8 20853.2 21625.5 22397.9 23266.7 24328.7 25294.1 26259.6 27418.1

GAIL GAS



M E C O N


Sl. YEAR OF OPERATION --> 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th

No ITEM

Revenue from Network Tariff (based on PIRR) 108167.4 111509.6 114982.0 118588.0 122301.4 126207.2 130264.3 134383.7 138633.6 143033.4 147589.6 152307.2

Domestic 2706.8 2798.8 2890.8 2989.4 3101.0 3245.6 3423.0 3515.0 3593.8 3685.8 3764.6 3850.0

Commercial 209.9 218.3 226.7 235.1 235.1 243.5 243.5 251.9 251.9 260.2 260.2 260.2

Industry 105250.7 108492.6 111864.5 115363.6 118965.3 122718.1 126597.8 130616.9 134788.0 139087.4 143564.8 148196.9

5 OTHER INCOME

6 GROSS PROFIT BEFORE INTT. 17213.9 17739.3 18406.7 19046.3 19760.5 20472.9 21266.8 21919.3 22730.0 23575.5 24492.7 25514.8

7 INTT. ON LONG TERM LOAN 237.9 207.6 195.9 172.0 177.7 176.7 211.0 229.7 225.2 201.2 178.9 152.6

8 INTERST ON BANK BORROWINGS 77.8 80.7 80.9 82.8 84.1 86.1 86.5 91.8 95.5 97.4 97.6 97.9

FOR WORKING CAPITAL

9 INTEREST ON OVER DRAFT 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

10 TOTAL FINANCIAL EXPENSES 315.6 288.2 276.7 254.9 261.8 262.9 297.5 321.5 320.7 298.6 276.6 250.5

11 DEPRECIATION 2062.9 2086.5 2127.2 2155.9 2208.4 2253.9 2316.9 2368.2 2404.3 2424.5 2446.4 2457.0

12 OPERATING PROFIT 14835.3 15364.5 16002.8 16635.6 17290.3 17956.2 18652.4 19229.6 20005.0 20852.4 21769.7 22807.4

13 PRELIMINARY EXPENSES WRITTEN OFF 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

14 PROFIT/LOSS BEFORE TAX 14835.3 15364.5 16002.8 16635.6 17290.3 17956.2 18652.4 19229.6 20005.0 20852.4 21769.7 22807.4

15 PROVISION FOR TAXATION 5251.1 5475.2 5751.6 5998.8 6269.8 6514.5 6781.9 6986.5 7266.0 7578.6 7928.3 8308.9

16 PROFIT AFTER TAX 9584.2 9889.4 10251.1 10636.9 11020.5 11441.7 11870.5 12243.1 12739.0 13273.7 13841.3 14498.5

17 DIVIDEND ON EQUITY 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 2.0

17 RETAINED PROFIT:

(i) CURRENT 9584.2 9889.4 10251.1 10636.9 11020.5 11441.7 11870.5 12243.1 12739.0 13273.7 13840.3 14496.5

(ii) CUMULATIVE 71104.1 80993.5 91244.6 101881.5 112902.0 124343.7 136214.1 148457.2 161196.2 174470.0 188310.3 202806.8

GAIL GAS



M E C O N


Table-11.04

CASHFLOW STATEMENT Sl.No. CONSTN. PERIOD OF OPERATIONS

ITEM/YEAR 1st 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th

A. SOURCES OF

FUNDS

1. EQUITY - FIXED CAPITAL 6264.1 1521.2 1059.4 1120.7 1259.5 78.8 222.4 560.5 204.8 871.3 131.3 204.8 185.5

- MARGIN MONEY 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

2. PROFIT BEFORE INTT.AND TAX -848.7 1986.9 3918.1 5480.4 7116.0 8084.5 9010.2 11064.9 13263.7 13659.0 14124.3 14620.6

3. DEPRECIATION AND PRELIMINARY

1059.3 1263.1 1478.6 1649.6 1664.8 1700.4 1781.3 1813.6 1934.4 1959.7 1992.0 2023.9

EXPENSES WRITTEN OFF

4. TERM LOAN - FIXED CAPITAL 9396.2 2281.8 1589.1 1681.0 1889.3 118.2 333.5 840.7 307.3 1307.0 197.0 307.3 278.2

- MARGIN MONEY 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Connection deposits from customers

300.0 300.0 1210.0 1280.0 90.0 90.0 120.0 130.0 100.0 110.0 150.0 100.0 140.0

5. INCRE. IN BANK BORROWINGS

FOR WORKING CAPITAL 171.3 119.7 12.7 30.9 141.3 1.3 17.1 44.5 26.6 80.3 1.8 16.8

6. OVER DRAFT 422.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

TOTAL CASH INFLOW (A) 15960.3 4907.1 7228.2 9491.1 10399.7 9209.0 10462.2 12339.8 13535.1 17513.0 16177.3 16730.2 17265.0

B. DISPOSITION OF FUNDS

1. CAPITAL EXPENDITURE 15960.3 4103.0 3858.5 4081.7 3238.8 287.0 675.9 1531.2 612.1 2288.3 478.3 612.1 603.6

2. DECREASE IN 0.0 0.0 1658.4 1868.5 2104.7 2119.5 2161.1 2266.2 2304.6 2468.0 834.3 662.5

GAIL GAS



M E C O N


Sl.No. CONSTN. PERIOD OF OPERATIONS

ITEM/YEAR 1st 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th

LONG TERM LOAN

3. INCREASE IN WORKING CAPITAL

171.3 119.7 12.7 30.9 141.3 1.3 17.1 44.5 26.6 80.3 1.8 16.8

4. TOTAL INTT.ON LONG TERM LOAN

613.1 1393.0 1504.3 1520.2 1327.1 1140.6 1004.7 805.9 703.7 475.9 313.4 261.7

5. INTT.ON BANK BORROWING 19.7 33.5 34.9 38.5 54.7 54.9 56.8 62.0 65.0 74.2 74.4 76.4

FOR WORKING CAPITAL

6. REPAYMENT OF OVER DRAFT 0.0 422.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

7. INTEREST ON OVER DRAFT 0.0 48.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

8. PROVISION FOR TAXATION 0.0 0.0 143.7 399.9 1329.6 2039.5 2524.7 3339.2 4241.7 4441.6 4743.6 4999.2

9. DIVIDEND ON EQUITY 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

TOTAL CASH OUTFLOW (B) 15960.3 4907.1 5875.4 7435.7 7096.8 5244.5 6031.7 7295.7 7129.9 9629.8 8018.4 6579.6 6620.3

NET CASH ACCRUALS (A-B) 0.0 0.0 1352.7 2055.4 3302.9 3964.6 4430.5 5044.1 6405.2 7883.2 8158.9 10150.6 10644.7

OPENING BALANCE 0.0 0.0 0.0 1352.7 3408.1 6711.0 10675.6 15106.1 20150.2 26555.4 34438.6 42597.5 52748.1

CUMULATIVE CASH SURPLUS 0.0 0.0 1352.7 3408.1 6711.0 10675.6 15106.1 20150.2 26555.4 34438.6 42597.5 52748.1 63392.7

Post-tax IRR on Capital Employed, %

23.6

Pre-tax IRR on Capital Employed, %

27.8

NPV @10% discount factor 40990.4

GAIL GAS



M E C O N


Cont…….. Table-11.04

Sl.No. PERIOD OF OPERATIONS

ITEM/YEAR 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th

A. SOURCES OF FUNDS

1. EQUITY - FIXED CAPITAL

239.9 122.6 248.6 148.8 309.9 236.4 421.6 340.5 217.9 105.1 113.8 79.9

- MARGIN MONEY

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

2. PROFIT BEFORE INTT.AND TAX

15151.0 15652.8 16279.5 16890.5 17552.1 18219.1 18949.9 19551.1 20325.7 21151.0 22046.2 23057.9

3. DEPRECIATION AND PRELIMINARY

2062.9 2086.5 2127.2 2155.9 2208.4 2253.9 2316.9 2368.2 2404.3 2424.5 2446.4 2457.0

EXPENSES WRITTEN OFF

4. TERM LOAN - FIXED CAPITAL

359.8 183.9 372.9 223.3 464.9 354.6 632.4 510.8 326.8 157.6 170.7 119.9

- MARGIN MONEY

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Connection deposits from customers

140.0 140.0 150.0 170.0 220.0 270.0 140.0 120.0 140.0 120.0 130.0 0.0

5. INCRE. IN BANK BORROWINGS

FOR WORKING CAPITAL

12.0 25.2 1.7 17.3 10.7 18.0 2.9 46.7 32.0 16.7 1.8 2.4

6. OVER DRAFT 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

TOTAL CASH INFLOW (A) 17965.5 18210.9 19180.0 19605.8 20765.9 21351.9 22463.7 22937.3 23447 23975 24909 25717.1

B. DISPOSITION OF FUNDS

1. CAPITAL EXPENDITURE

739.7 446.4 771.6 542.1 994.8 861.0 1194.0 971.4 684.7 382.7 414.6 199.8

2. DECREASE IN LONG TERM LOAN

461.1 491.3 472.6 414.2 403.7 298.4 318.1 358.7 387.8 383.7 380.4 355.1

GAIL GAS



M E C O N


Sl.No. PERIOD OF OPERATIONS


3. INCREASE IN WORKING CAPITAL

12.0 25.2 1.7 17.3 10.7 18.0 2.9 46.7 32.0 16.7 1.8 2.4

4. TOTAL INTT.ON LONG TERM LOAN

237.9 207.6 195.9 172.0 177.7 176.7 211.0 229.7 225.2 201.2 178.9 152.6

5. INTT.ON BANK BORROWING

77.8 80.7 80.9 82.8 84.1 86.1 86.5 91.8 95.5 97.4 97.6 97.9

FOR WORKING CAPITAL

6. REPAYMENT OF OVER DRAFT

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

7. INTEREST ON OVER DRAFT

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

8. PROVISION FOR TAXATION

5251.1 5475.2 5751.6 5998.8 6269.8 6514.5 6781.9 6986.5 7266.0 7578.6 7928.3 8308.9

9. DIVIDEND ON EQUITY

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 2.0

TOTAL CASH OUTFLOW (B) 6779.5 6726.4 7274.3 7227.2 7940.7 7954.7 8594.4 8684.8 8691.2 8660.3 9002.6 9118.8

NET CASH ACCRUALS (A-B)

11186.0 11484.5 11905.7 12378.6 12825.3 13397.1 13869.3 14252.5 14755.5 15314.6 15906.3 16598.3

OPENING BALANCE

63392.7 74578.7 86063.3 97969.0 110347.5 123172.8 136569.9 150439.2 164691.7 179447.2 194761.8 210668.1

CUMULATIVE CASH SURPLUS

74578.7 86063.3 97969.0 110347.5 123172.8 136569.9 150439.2 164691.7 179447.2 194761.8 210668.1 227266.5

Post-tax IRR on Capital Employed, %

Pre-tax IRR on Capital Employed, %

NPV @10% discount factor

GAIL GAS



M E C O N


Table-11.05 ESTIMATED BALANCE SHEET

(In Rs Lakhs) CONSTN. PERIOD OF OPERATIONS

ITEM/YEAR 1st 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th ASSETS Gross Fixed Assets 15960.3 20063.3 23921.8 28003.6 31242.4 31529.4 32205.3 33736.5 34348.6 36636.9 37115.3 37727.4 Less: Accumulated Depreciation 1059.3 2322.4 3801.0 5450.6 7115.4 8815.8 10597.1 12410.7 14345.1 16304.8 18296.8 20320.7 Net Fixed Assets 0.0 14901.0 17740.9 20120.8 22553.0 24127.0 22713.6 21608.2 21325.8 20003.5 20332.1 18818.5 17406.7 Net Current Assets 171.3 291.0 303.6 334.5 475.8 477.1 494.2 538.7 565.3 645.6 647.4 664.2 Cash & Bank 0.0 -422.2 1352.7 3408.1 6711.0 10675.6 15106.1 20150.2 26555.4 34438.6 42597.5 52748.1 63392.7 Investments 15960.3 4103.0 3858.5 4081.7 3238.8 287.0 675.9 1531.2 612.1 2288.3 478.3 612.1 603.6 Misc. Fixed Assets Deferred Revenue Exp. Others TOTAL ASSETS 15960.3 18753.1 23243.1 27914.4 32837.3 35565.4 38972.7 43783.9 49032.1 57295.7 64053.5 72826.0 82067.3 LIABILITIES Net Worth Equity Capital 6264.1 7785.3 8844.7 9965.4 11225.0 11303.8 11526.1 12086.6 12291.5 13162.8 13294.1 13499.0 13684.4 Preference Share Capital Reserves 0.0 -1481.5 -969.7 1265.5 4787.3 9191.8 14041.3 19465.3 26323.1 34576.5 43243.7 52236.6 61519.9 Net Worth 6264.1 6303.8 7875.1 11231.0 16012.3 20495.6 25567.5 31551.9 38614.6 47739.3 56537.8 65735.5 75204.3 Debt Rupee Term Loan 9696.2 12278.0 15077.1 16379.8 16490.5 14594.0 12928.1 11737.7 9878.8 8991.1 6870.1 6443.1 6198.7 FC Term Loan Bank Borrowings for Working Capital 171.3 291.0 303.6 334.5 475.8 477.1 494.2 538.7 565.3 645.6 647.4 664.2 Others TOTAL LIABILITIES 15960.3 18753.1 23243.1 27914.4 32837.3 35565.4 38972.7 43783.9 49032.1 57295.7 64053.5 72826.0 82067.3

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Cont……. Table-11.05

PERIOD OF OPERATIONS


ASSETS Gross Fixed Assets 38331.0 39070.7 39517.1 40288.7 40830.8 41825.6 42686.6 43880.5 44851.9 45536.6 45919.3 46333.8

Less: Accumulated Depreciation 22383.6 24470.1 26597.4 28753.2 30961.6 33215.5 35532.4 37900.5 40304.9 42729.4 45175.8 47632.8

Net Fixed Assets 15947.4 14600.6 12919.8 11535.5 9869.2 8610.1 7154.2 5980.0 4547.0 2807.2 743.4 -1299.0

Net Current Assets 676.2 701.3 703.1 720.4 731.1 749.0 752.0 798.7 830.6 847.4 849.1 851.6

Cash & Bank 74578.7 86063.3 97969.0 110347.5 123172.8 136569.9 150439.2 164691.7 179447.2 194761.8 210668.1 227266.5

Investments 739.7 446.4 771.6 542.1 994.8 861.0 1194.0 971.4 684.7 382.7 414.6 199.8

Misc. Fixed Assets

Deferred Revenue Exp.

Others

TOTAL ASSETS 91942.0 101811.6 112363.4 123145.5 134767.8 146790.0 159539.3 172441.7 185509.6 198799.0 212675.2 227018.8

LIABILITIES

Net Worth

Equity Capital 13924.3 14046.9 14295.5 14444.3 14754.2 14990.6 15412.2 15752.8 15970.6 16075.7 16189.5 16269.5

Preference Share Capital

Reserves 71104.1 80993.5 91244.6 101881.5 112902.0 124343.7 136214.1 148457.2 161196.2 174470.0 188310.3 202806.8

Net Worth 85028.4 95040.4 105540.1 116325.8 127656.2 139334.3 151626.4 164210.0 177166.9 190545.7 204499.8 219076.2

Debt

Rupee Term Loan 6237.4 6069.9 6120.2 6099.3 6380.5 6706.7 7161.0 7433.1 7512.1 7406.0 7326.3 7091.1

FC Term Loan

Bank Borrowings for Working Capital 676.2 701.3 703.1 720.4 731.1 749.0 752.0 798.7 830.6 847.4 849.1 851.6

Others

TOTAL LIABILITIES 91942.0 101811.6 112363.4 123145.5 134767.8 146790.0 159539.3 172441.7 185509.6 198799.0 212675.2 227018.8

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M E C O N


PAY BACK PERIOD CALCULATION

Table-11.06

Year of operation Gross profit Financial

expenses Tax Net cash accruals

1 210.6 632.8 0.0 (422.2)

2 3,250.0 1,475.1 0.0 1,774.9

3 5,396.7 1,539.2 143.7 3,713.8

4 7,130.0 1,558.7 399.9 5,171.4

5 8,780.8 1,381.9 1,329.6 6,069.3

6 9,785.0 1,195.5 2,039.5 6,550.0

7 10,791.5 1,061.5 2,524.7 7,205.3

8 12,878.5 867.8 3,339.2 8,671.4

9 15,198.2 768.7 4,241.7 10,187.8

10 15,618.7 550.2 4,441.6 10,626.9

FIXED CAPITAL COST = 46533.6 Lakhs

PAY - BACK PERIOD = 8.8 Years

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DEBT - SERVICE COVERAGE RATIO Table-11.07

I n f l o w Out flow Year of

operation Profit after tax

Deprn. & Prel. Exp.

Interest on LTL

Total inflow

Repayment of LTL

Interest on LTL

Total outflow

Debt - service

coverage ratio,

(DSCR)

1st (1,482) 1,059 613 191 0 613 613 0.31

2nd 512 1,263 1,393 3,168 0 1,393 1,393 2.27

3rd 2,235 1,479 1,504 5,218 1,658 1,504 3,163 1.65

4th 3,522 1,650 1,520 6,692 1,869 1,520 3,389 1.97

5th 4,405 1,665 1,327 7,396 2,105 1,327 3,432 2.16

6th 4,850 1,700 1,141 7,691 2,119 1,141 3,260 2.36

7th 5,424 1,781 1,005 8,210 2,161 1,005 3,166 2.59

8th 6,858 1,781 806 9,445 2,266 806 3,072 3.07

9th 8,253 1,781 704 10,738 2,305 704 3,008 3.57

10th 8,667 1,814 476 10,957 2,468 476 2,944 3.72

AVERAGE 43,244 15,973 10,489 69,706 16,951 10,489 27,440 2.54

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M E C O N


BREAK-EVEN CAPACITY CALCULATION (At 100 % capacity Utilisation)

Table-11.08 (In Rs Lakhs)

Sl. No. Item Amount

1. Net sales realisation 118,802

2. Variable expenses 100,459

3. Contribution 18,343

4. Fixed expenses-Mfg.expenses 2,227

-Depreciation 1,985

-Interest 633

Sub total (4) 4,845

5. Break-even capacity (%) 26.4

6. Cash break-even capacity (%) 15.6

Note: Interest and depreciation charges have been considered average during the

project life.

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M E C O N


SENSITIVITY ANALYSIS

Table-11.09

Sl. No Description

IRR on Capital Employ

ed, (%)

Compression

Charges, Rs/Kg

Transportation Tariff,

Rs/MMBTU

1 Base Case 23.6 4.07 27.14

2 With increase in Capital cost by 10% 22.2 4.19 29.50

3 With decrease in Capital cost by 10% 25.4 3.95 24.78

4 With increase in Operating cost by 10% 23.3 4.36 27.50

5 With decrease in Operating cost by 10% 23.9 3.78 26.78

6 With increase in Gas volume by 10% 25.6 3.70 24.67

7 With decrease in Gas volume by 10% 21.6 4.52 30.16

8 With increase in gas purchase price by 10% 6.6 4.19 27.14

9 With decrease in gas purchase price by 10% 35.4 3.96 27.14

10 With increase in Sales price by 10% 37.0 4.07 27.14 11 With decrease in Sales price by 5% 15.4 4.07 27.14

ANNEXURES & DRAWINGS

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M E C O N

H:\rajesh\Market Survey\TTZ\Final\BOM.doc Ann II-BOM - 1/5 © 2010 MECON Limited. All Rights Reserved

Sl. Description Unit Quantity

No. Upto 5th

Year 6th to 15th

Year 16th to 25th

Year

A CITY GATE STATIONS FOR TTZ

A 1.1 CGS for Ferozabad Lot 1 0 0

A 1.2 CGS Near Chhata Sugar Mill (SV 10 of GREP) Lot 1 0 0

A 1.3 CGS at Bhajera for Bharatpur (SV 7 of GREP) Lot 1 0 0

A 1.4 CGS for Achhnera (Agra Bajera P/L)) Lot 1 0 0

A 1.5 CGS for Govardhan (SV 9 of GREP) Lot 1 0 0

A 2 Odorising System Lot 5 0 0

A 3 Mechanical Erection Lot 5 0 0

A 4 Plot Lot 5 0 0

B. STEEL PIPELINE GRID IN TTZ B 1 ROU Acquisition (Total) B 1.1 ROU Acquisition (City Conditions) Lot 42800 0 0

B 1.2 ROU Acquisition (Cross Country) Lot 100000 0 0

B 2 Steel Pipeline Supply

B 2.1 FIrozabad P/L System

i Steel Pipe ( 4" x 6.4mm- API 5L GrB, 3L PE Coated) M 7300 0 0

ii Steel Pipe ( 6" x 6.4mm- API 5L GrB, 3L PE Coated) M 800 0 0

iii Steel Pipe (8" x 6.4mm- API 5L Gr B, 3L PE Coated)

M 4000 0 0

iv Steel Pipe (10" x 6.4mm- API 5L Gr B, 3L PE Coated)

M 26700 0 0

B 2.2 Chhata-Vrindavan-Hathras P/L System

B 2.2.1

Chhata-Barsana-Nandgaon



iii Steel Pipe ( 8" x 6.4mm- API 5L Gr B, 3L PE Coated)

M 0 0 0

B 2.2.1

Chhata-Vrindavan-Raya-Hathras





M 21000 0 0

B 2.3 Govardhan

Steel Pipe ( 4" x 6.4mm- API 5L GrB, 3L PE Coated) M 5000 0 0


Steel Pipe ( 8" x 6.4mm- API 5L Gr B, 3L PE Coated)

M 0 0 0

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M E C O N



No. Upto 5th

Year 6th to 15th

Year 16th to 25th

Year


M 0 0 0

B 2.4 Acchnera-Kiraoli-Fatehpursikri P/L System




M 0 0 0


M 0 0 0

B 2.5 Bhajera-Bharatpur P/L System




M 0 0 0

B 3 Supply of

B 3.1 Warning Grid : 1 mm thk M 142800 0 0

B 3.2 50mm dia HDPE M 142800 0 0

B 3.3 33 mm dia OFC M 142800 0 0

B 4 Cathodic Protection of Grid Line

i) TCP & PCP : 10" x 26.7 km M2 10" x 26.7 km

0 0

ii) TCP & PCP : 8" x 25 km M2 8" x 25 km 0 0

ii) TCP & PCP : 6" x 45.8 km M2 6" x 45.8 km 0 0

ii) TCP & PCP : 4" x 45.3 km M2 4" x 45.3 km

0 0

B 5 SV Stations on City Grid

i) SV Stations on 4" Dia Pipe line Lot 8 0 0 ii) SV Stations on 6" Dia Pipe line Lot 8 0 0 iii) SV Stations on 8" Dia Pipe line Lot 9 0 0 iv) SV Stations on 10" Dia Pipe line Lot 10 0 0

B 6 Laying Installation & Testing of : B 6.1 Steel Pipe ( 4" x 6.4mm- API 5L GrB, 3L PE Coated) M 45300 0 0 B 6.2 Steel Pipe ( 6" x 6.4mm- API 5L GrB, 3L PE Coated) M 800 0 0 B 6.3 Steel Pipe ( 8" x 6.4mm- API 5L Gr B, 3L PE

Coated) M 49000 0 0

B 6.4 Steel Pipe ( 10" x 6.4mm- API 5L Gr B, 3L PE Coated)

M 47700 0

B 6.4 50mm dia HDPE M 0 0 0 B 6.5 50mm dia OFC M 0 0 0

GAIL GAS



M E C O N



No. Upto 5th

Year 6th to 15th

Year 16th to 25th

Year

C. CNG FACILITIES IN TTZ C 1 MOTHER STATION Nos. 5 2 1 C 1.1

Land : Plot size, 40m x 60m with plot development

Lot 5 2 1

C 1.2

Compressors

- 1200 SCM/ Hr, Pr. : 19 to 255 kg/cm2(g) (GAS) Nos. 1 x 5 1 x 6 1 x 5

- 650 SCM/ Hr, Pr. : 19 to 255 kg/cm2(g) (GAS) Nos. - 1 x 3 C 1.3

Cascades

- Capacity : 4500 WL Nos. 1 x 5 1 x 9 1 x 5

C 1.4

Dispenser*

a) Car/Auto Nos. 2 x 5 1 x 6 1 x 4

b) Bus Nos. 2 x 5 1 x 6 1 x 4

C 1.5

DG Set & Control Panel, AVR

a) 15 kVA Nos. 1 x 5 1 x 2 1 x 1

C 1.6

Bore Well Nos. 1 x 5 1 x 2 1 x 1

- Depth - 100m, - Power - 3 HP

C 1.7

Interconnecting Pipe (up to 2" dia.) & SS Tubes Lot 1 x 5 1 x 2 1 x 1

SS Fittings

C 1.8

Civil Works: Foundations, Building, Control Room & Cascade Filling Area

Lot 1 x 5 1 x 2 1 x 1

C 3 MOTHER STNS (In OMC ROs) Nos. 2 1 C 3.1

Compressor

-1200 SCM/ Hr, Pr. : 19 to 255 kg/cm2(g) (Gas)

Nos. 1 x 2 1 x 1 1 x 2

C 3.2

Dispenser

a) Car Nos. 1 x 2 1 x 1

b) Bus Nos. 1 x 2 1 x 1

C 3.4

Cascade (3000 WL) Nos. 1 x 2 1 x 1 1 x 2

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M E C O N



No. Upto 5th

Year 6th to 15th

Year 16th to 25th

Year

C 1.8

Civil Works: Foundations, Disp. Island & Lot 1 x 2 1 x 1

Cascade Filling Area - - -

C 3.5

Interconnecting SS Tubes, Valves, lot 1 x 2 1 x 1

Fittings C 3.6

Fire Fighting System Lot 1 x 2 1 x 1

DCP & CO2 type (70kg, 10kg, 4.5kg) C 5 DAUGHTER BOOSTER STATIONS (in OMC Ros) Nos. 20 6 C 5.1

Compressor (Electric Driven)

- Capacity : 250 SCM/ Hr Nos. 1 x 20 1 x 6 C 5.2

Dispenser*

- Car / Auto Nos. 2 x 20 2 x 6 C 5.3

Cascade (2200 WL) Nos. 1 x 20 1 x 6

C 5.3

Civil Works: Foundations, Disp. Island &

C 5.4

Interconnecting SS tubes, Valves, lot 1 x 20 1 x 6

Fittings C 5.5

Fire Fighting System Lot 1 x 20 1 x 6

DCP & CO2 type (70kg, 10kg, 4.5kg) C 5.6

LCV - Tata/ DCM, with Mobile 2200 WL Cascade Nos. 30 9

D MDPE NETWORK IN TTZ D 1.1

Pipe MDPE

i) - dia. 180mm M 38160 14640 19132 ii) - dia. 125mm M 76320 29280 38264 iii) - dia. 63mm M 171720 65880 86095 iv) - dia. 32mm M 381600 146400 191322 v) - dia. 20mm M 318000 122000 159435

D 1.2

HDPE PIPE FOR CROSSINGS LOT 1 1 1

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No. Upto 5th

Year 6th to 15th

Year 16th to 25th

Year

D 1.3

Warning Grid

- 1mm Thick M 985800 378200 494249 D 1.4

MDPE Fittings Incl. Couplers LOT 1 1 1 D 1.5

MDPE Ball Valves LOT 1 1 1 D 1.6

District Regulating Stations

i) DRS, 2.500 SCM/hr Nos. 2 0 ii) DRS, 1250 SCM/hr Nos. 3 0 iii) DRS, 600 SCM/hr Nos. 7 0 iv) DRS, 400 SCM/hr Nos. 3 0

D 1.7

Laying Installation & Testing of

i) - dia. 180mm M 38160 14640 19132 ii) - dia. 125mm M 76320 29280 38264 iii) - dia. 63mm M 171720 65880 86095 iv) - dia. 32mm M 381600 146400 191322 v) - dia. 20mm M 318000 122000 159435

E Domestic Consumers Nos. 63600 24400 31887 F SCADA

SCADA with RTU for Gas Actuator valves open/close position, Flow data Inlet pressure, Temperature, Cathodic Protection parameters etc.

Lot 1 0 0

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