BENGALURU CGD

REVIEW

Bangalore – 24th August, 2016

 Bengaluru GA
Assistance solicited from State Government

Map
 BEL
LAYOUT
YELHANK
A
Jindal
Aluminium
HBR
LAYOUT

IIS KALYAN NAGAR

PEENIYA
C
IND. AREA ITPL
BHEL

HA WHITEFIELD
L
BEML

HSR LAYOUT CENTRAL JAIL

BOSCH
RT
SINGASANDRA ELCTRONIC
CITY - II
ELCTRONIC
CITY - I

INITIAL PROPOSED AREAS - BEL, BHEL, HAL, BEML, HSR LAYOUT, ITPL, WHITEFIELD, HBR LAYOUT,
YELHANKA, JINDAL ALUMINIUM, PEENIYA IND. AREA, ELECTRONICS CITY – I & II, JAIL road, BOSCH, RT
SINGASANDRA.
HIGHLIGHTS OF BENGALURU CITY GAS DISTRIBUTION PROJECT

 CGD Area : 4395 Sq. Km.

 Population: 106.12 Lac (As per census 2011)
 Date of award: 18.02.2015
 Target set by PNGRB: MINIMUM WORK PLAN
Pipeline Laying Total Year 1 Year 2 Year 3 Year 4 Year 5
MWP as per PNGRB 1583 316 791 1266 1424 1583

Planned by GAIL Gas 4406 322 1454 2490 3468 4406

PNG Domestic Connections Total Year 1 Year 2 Year 3 Year 4 Year 5

PNG Domestic Connections 131156 -- 19673 65578 91809 131156

Planned by GAIL Gas 132000 5000 40000 72000 102000 132000

 Minimum Work Programme (MWP) for 5 years

MWP AS PER PNGRB TOTAL YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Inch-km Of Pipeline To Be Laid 1583 316 791 1266 1424 1583

(Cumulative)

PNG Domestic Connections 131156 -- 19673 65578 91809 131156

(Cumulative)

Charge Areas To Cover CA 1 to 8 in 5 years

Completed
Inch-km Of Pipeline Laid
889 347 542 -- -- --
(Cumulative)

Charge Areas CA 5 to 8 -- -- --
PNG Domestic Connections
8040 1308 6732 - - -
(Cumulative) - GI ready
Meter installed 4830 803 4027 - - -

2nd year MWP for Pipe laying achieved.

 Sales forecast (as per DFR)
In Rs. Lacs

Segment 2016-17 2017-18 2018-19 2019-20 2020-21

PNG- Domestic 604.8 2150.3 3091 3964.6 5039.7

PNG- Commercial 162.7 813.4 1304.1 1789.5 2277.5

PNG- Industrial 5195.6 21533.5 33552.3 46447.3 57965.3

CNG 2229.6 11148 26872.6 48699.2 64893.2

Total 8192 35645 64820 100900 130175

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 Gas Supply - Existing
Customers Qty (SCMD)

BOSCH 1,000
BHEL 16,000
Industrial

INTEL 10,000
Total 27,000 – 32,000
Qty (SCMD)

BEL Canteen 500

Commercial

Andhra Bhavan (HSR) 30

Total 530

S No 2015-2016 2016-17
( as on July’16)
Gas sales 1.1MMSCM 2.84 MMSCM
Revenue

(in MMSCM)
Revenue in INR 4.1 Cr. 4.85 Cr.
 Agreements Signed
S. No Industrial Qty (SCMD)
1 Vinir Engineering 500
2 Sab Engineering 40
3 Garuda Foods 250
4 Apotex Pharma 1085
5 Rail Wheel Factory 36,000
Total 37,875
S. No Commercial Qty (SCMD)
1 Taj Vivanta, Yashwantpur 200
2 Marriott Bellandur 200
3 Phoneix Mall 1600
4 Marriott Whitefield & In- Orbit Mall 800
5 Biryani Zone 30
6 Sheraton 750
Total 3580
Domestic

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 Readiness for supply of Domestic PNG
 Gas supply started in 720 houses in HSR Layout & BEL colony

 PNG connectivity completed :

BEL/Jindal/Brigade township : 1631 Units
HSR Layout : 3841 Units
Total : 5472 Units

 Bulk PNG Agreement signed with :

Mantri Developers : 11510 Units
Prestige group : 4409 Units/ 23000 Units
Bharatiya group : 2415 Units
Divyasree Group : 1743 Units
Adarsh Group : 1424 Units / 4000 Units
Brigade Group : 1635 Units
Vasathi Avante : 380 Units

 Pre-registration : 42,000 Units

 Registration : 18,700 Units
Opening of new areas in next year( 3rd year of MWP):

Sr. No Area Potential(units)

1 Marathahalli/ HAL area 7,000
2 Electronic city 15,000
3 Whitefield 10,000
4 Koramangala 7,000
5 HBR Layout 6,500
6 Nagawara 7,000
7 Mathikere & Dollars Colony 7,000
8 BTM Layout 7,000
Total 66,500
CNG

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 CNG Stations
 IOCL -. Agreement signed with IOCL on 18.08.2016 . Five ROs have been identified for
which PESO license are to be processed.

 BPCL – BPCL is reluctant to sign agreement though it was agreed between GAIL Gas and
BPCL that CNG agreement will be signed in line with MGL agreement. PESO applications
have been sent for 3 ROs (1 License received), two ROs under process and 4 new locations
identified.

 HPCL – CNG Sale Agreement likely to be finalised by 31 st August, 2016. HPCL has identified
6 sites to offer to GAIL Gas and site viability is being examined.
OMC Sites Identified License applied License Received
IOCL 5 (2-DBS) - -
HPCL 6 (2-DBS) - -
BPCL 6 (2-DBS) 3 1

 EOI: First round of EoI has not yielded desired results. Fresh EoI is being published Sep’ 16

 PESO – Colocation of ALDS & CNG. Since Auto LPG is compulsory for Autos in Bangalore,
most of the OMC sites inside the city have ALDS. This reduces the sites available for CNG
 CNG Stations
 ESSAR OIL - Discussions are underway. They presently have three ROs. They
are processing new ROs and have already planned ALDS in many of them.
Trying to colocate in some sites where ALDS plans are yet to be firmed up.

 SHELL- NDA Signed. Reworking their retail strategy & have requested for time.

 Karnataka Soap & Detergent Limited has given consent for allotment of 2250
Sq Mtrs plot for CNG station, however based on lease rent sought by KSDL, land
size is being reworked.

 BDA - Applied to BDA for 02 Nos of land. Are reviewing the request for allotment.

 PWD - Identified one land at Hoskote and other being planned for site visit.

 KSIIDC - Identified land Near Airport and rate is being finalised by KSIIDC

 KIADB - Applied to KIADB for 05 Nos of land. KIADB Board approval is pending.
Industry

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 Industrial Area – Plan
FY 2016 – 17
Industrial Area Commencement Schedule Potential
Peenya March, 2017 50,000
Bommasandra March, 2017 75,000
Jigani March, 2017 75,000
Hoskote * December, 2016 75,000
Singasandra December, 2016 5,000
Whitefield * December, 2016 20,000
Dabaspet * March, 2017 10,000
Veerasandra June, 2017 25,000
Nelamangala* June, 2017 30,000

Total 4,15,000
 Industrial Area – Plan
FY 2017 – 18
Industrial Area Schedule Potential
Yelahanka** Jan, 2018 60,000
Electronic City December, 2017 30,000
Kumbalgodu December, 2017 50,000
Sarjapura June, 2017 30,000
Devanahalli March, 2018 50,000
Anekal December, 2017 20,000
Attibele December, 2017 20,000
Total 2,60,000

* Connectivity to these areas is subject to transfer of GAIL Pipeline

Map
 Volumes Projections
Market Study Projections (SCMD)
Segment Year 2 Year 3 Year 4 Year 5
Domestic 4100 16100 28700 40600
CNG 38800 95400 228500 414800
Industrial 82500 171600 267700 371200
Commercial 3500 11000 26700 39600
Total 128900 294700 551600 866100

Revised Sales Plan (SCMD)

Segment Year 2 Year 3 Year 4 Year 5
Domestic 4100 16100 28700 40600
CNG 38800 150000 300000 500000
Industrial 82500 4,97,500 7,57,000 8,50,000
Commercial 3500 11000 26700 39600
Total 128900 674600 1112400 1430200
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 Action Plan for Achieving 1MMSCMD
• Tender being prepared for Direct Marketing Agency (DMA) for
industrial sales to be floated by 10th September.
• Connectivity plan being developed for IAs
• Industry Area meets being planned to increase awareness
• District Industries Centre has been roped in to reach out to
customers
• Website:
– Online Registration for Industrial Consumers
– FAQs on PNG
• Advertisements in Industrial Areas Newsletters

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GoK Critical Issues

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 Entry Tax
 Clarification on non-applicability of Entry Tax for
KVAT paying consumers sought – UP Model
 Consumers of other suppliers who are on CST are not
paying KVAT (14.5%) & paying Entry Tax (5%)
 GAIL Gas consumers paying both (14.5%+5%)
 NG not mentioned in Entry Tax Act
 LPG has no Entry Tax

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 KVAT

GoK to be requested for:

 KVAT at 0% for Domestic

 KVAT at 5% for CNG

 KVAT exemption on CNG Kits – first 3 Years

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ATR

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 ATR of CMD Review Meeting dated 21.07.2016
S/N Action as per MOM Status Remarks Target date for pending
points
GAIL Related Matters
2. Finalization on offering Bundled The matter is being deliberated by GAIL in the 30.07.2016
Gas Contract from GAIL to GAIL context of tax implications in light of similar requests
Gas. from Gas consumers.
3. To bring all existing Industrial Discussions on with GAIL Offers are under 15.08.2016
Customers to GAIL Gas kitty by to get better Spot prices preparation for Jindal and
offering best contract terms & Orient Bell.
pricing (ex. Jindal Aluminum)
5. To form Industrial Survey Group Committee has had Plan developed for 25.08.2016
consisting of Sh. Deepak Sawant, meetings on 29 and 30 finalizing the report.
th th

Sh. Sumit Kishore, Sh. Sunil Jha & of July, 2016

Sh. V. Balakrishnan. Report to be
submitted.
9. Draft Letter to Shell to be Draft forwarded to Dir (M) office Complied
provided to Director (Fin.) Office.

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 ATR of CMD Review Meeting dated 21.07.2016
S/N Action as per MOM Status Remarks Target date for
pending points
CNG Programme:
10. Meeting with MoPNG for facilitating Meeting being planned. -- 31.08.2016
Standard CNG Station Agreement
with all OMCs for Bengaluru

15. To achieve Gas Sales Volumes of 1 Action plan is being drawn out -- 31.12.2017
MMSCMD  

16. Industrial Customer Meet Meets planned in -- 30.09.2016

  September/October  

17. Detailed Plan for 10 Decompression Cost economics being worked out -- 31.08.2016
Units & their connections coverage along with related aspects
along with cost working for catering
Commercial/ Industrial Customers.
18. Advt. in local TV/ Radio for -- -- --
Domestic PNG experience, after
inauguration of Bengaluru CGD
Project.

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Thank you
 ATR of CMD Review Meeting dated 21.07.2016
S/N Action as per MOM Status Remarks Target date for pending
points
GAIL Related Matters
1. Transfer of GAIL pipelines to GAIL Provisional clearance has been given by ED (Mktg) 25.07.2016
Gas vide email dated 26.07.2016 for commencement of
work by GAIL Gas on Orient Bell line. In the same
mail GAIL has informed that a Board Note is being
prepared for transfer of assets to GAIL Gas.
2. Finalization on offering Bundled The matter is being deliberated by GAIL in the 30.07.2016
Gas Contract from GAIL to GAIL context of tax implications in light of similar requests
Gas. from Gas consumers.
3. To bring all existing Industrial Discussions on with GAIL Offers are under 15.08.2016
Customers to GAIL Gas kitty by to get better Spot prices preparation for Jindal and
offering best contract terms & Orient Bell.
pricing (ex. Jindal Aluminum)
4. Finalization of Agreement with GAIL held meeting with KPCL on 05.08.2016 --
KPCL. regarding signing of non-disclosure agreement
before submissions of final offer to KPCL
5. To form Industrial Survey Group Committee has had Plan developed for 25.08.2016
consisting of Sh. Deepak Sawant, meetings on 29 and 30 finalizing the report.
th th

Sh. Sumit Kishore, Sh. Sunil Jha & of July, 2016

Sh. V. Balakrishnan. Report to be
submitted.

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 ATR of CMD Review Meeting dated 21.07.2016
S/N Action as per MOM Status Remarks Target date for
pending points
Project Milestones
6. Steel Pipeline: Completion of 73    
Kms of Steel Grid. Action plan has been drawn in consultation with Mecon for  
7. MDPE Pipeline: Completion of 600 achieving this target  
kms of MDPE Grid    
31.03.2017
8. Domestic PNG Connections:  
Completion of 30,000 domestic Action plan being finalized.
connections
CNG Programme:
9. Draft Letter to Shell to be provided Draft forwarded to Dir (M) office Complied 30.07.2016
to Director (Fin.) Office.
10. Meeting with MoPNG for facilitating Meeting being planned. -- 31.08.2016
Standard CNG Station Agreement
with all OMCs for Bengaluru

11. Commissioning of SV2B & CNG Station at SV 2B commissioned -- 15.08.2016 

Sumanahalli CNG Stations.  and business is likely to be  
  commenced shortly.  
  Application for Sumanahalli - PESO  
  license has been forwarded.  
   
 
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 ATR of CMD Review Meeting dated 21.07.2016
S/N Action as per MOM Status Remarks Target date for
pending points
GAIL Related Matters
12. Commissioning of Peenya & PESO applications under -- 25.08.2016
Hennur CNG Stations. preparations  
13. RTO Approvals for 50 Nos. CNG Vendor (iTuk) is preparing -- 31.08.2016
fueled 2-Wheelers. document for submission
to RTO
Permissions
14. To provide a master plan of all Blue print has been -- 27.07.2016
NHAI permissions required over prepared in consultation
next 3 years to Chairman’s Office with Mecon.
for forwarding it to MoRTH.
Marketing Milestones:
15. To achieve Gas Sales Volumes of 1 Action plan is being drawn -- 31.12.2017
MMSCMD out  
16. Industrial Customer Meet Meets planned in -- 30.09.2016
  September/October  
17. Detailed Plan for 10 Cost economics being -- 31.08.2016
Decompression Units & their worked out along with
connections coverage along with related aspects
cost working for catering
Commercial/ Industrial Customers.

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 ATR of CMD Review Meeting dated 21.07.2016

S/N Action as per MOM Status Remarks Target date for pending
points
18. Advt. in local TV/ Radio for -- -- --
Domestic PNG experience, after
inauguration of Bengaluru CGD
Project.
GAIL Related Matters
Manpower related
19. Separate Group to be formed for Group formation has been Complied.  
Industrial Connectivity. initiated and work has
commenced on new
pipeline
20. Direct joining of 4 fresh Diploma Offer letters yet to be    
Engineers to GAIL Gas Bengaluru. issued by GAIL to the -- --
recruits.    

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