TheRoy

alGr
oupOfCol
leges,
Bor
awal(Mansa)

Pr
oject
:G&KCNGPump

Submi
tt
edTo:Pr
of.Aj
itPat
hak

Submi
tt
edBy
:Kar
anj
otKaur
Cl
ass:B.
Com 3r
d
Rol
lNo.
:3106
Col
l
egeI
'
dNo.
:860
Ifwewantt omakeal otofmoneyandbet hebossof
ownbusi ness,thent hisiswhatwemustdo!Wecan
startownbusi nessbyopeni ngaCNGpumpor
elect r
icvehi
clechar gingpoint.Yes, t
hesear ethehot
busi nessesoft hefutureaspet rolanddi eselstat
ions
willdieout.Theposi t i
veaspect softhisbusinessi s
thatourear ningscancommencef rom thever yfi
rst
day !CNGpumphast hepot enti
altomakeweear n
mi l
lions.Howt ostart?Well,knowt hatNexgen
Ener giaLimit
edi soff eri
ngdealershipsforits
expansi onundert heSahajBhar atYojana.
Ifwear est arti
ngupwi thCNGPump, Elect
ri
c
VehicleChar gingstati
on,wewi llbeabletoget
subsidyfrom gover nment,rebateinincomet axupt
o
nextfiveyear s,besi
deseasyl oanfrom banks.Apar
t
fr
om t hese,wecanal soavailofbenefiti
ntermsof
pri
vateser vi
cesof fer
edbyt hecompany .
Pr
esentDemand:
ThepresentDemandofCNGi sveryhighbecause
thecostofCNGi sverycheapascompar edto
petr
oleum,dieselandLPG.Thisisalsobeneficial
fort
hel i
feofengineofvehi
clessot hepeople
pref
ert heCNG.TheuseofCNGi nvehicl
esbrings
anaddedbl essi
ngthati
tislesspollut
ingthen
 r
egur
algasol
ine.
Di
str
ibut
ionChannel
s:
Nodist
ri
but
ionchanneli
srequi
redforCNG.The
cust
omercomeatCNGst ati
onandf i
llt
heircars
wit
hCNG.Sonodi st
ri
buti
onchannelisrequir
ed.
Over
viewofCNGi
nMansa:
AsIam const ructi
ngt heCNGst ationinMansaso
theover vi
ewoft heCNGi ndustryisasf oll
ows:The
businessofCNGf il
li
ngst ati
onhasmar ketitspl
ace
i
nt hecount rythroughgr owt hduringlastf ewy ears.
Thisgr owthhasopenedupnewoppor t
uni t
ies.
However ,
thegr owthofCNGr efueli
ngst ati
onin
Mansahasbeenver ysl owdespi t
eapot enti
al
mar ketdemand.Cur rent l
yt herearenoCNG
ref
uel i
ngst at
ioni nMansa.Soi t'
sver yeasyt osetup
theCNGr efuelingstationi nourdi str
ict
.
Vi
sion:
Goalt
obui
ldaround50standar
dCNGr ef
uel
ing
st
ati
onsi
nmajorcit
iesoft
hecount
ry.
Mi
ssi
on:
Ourmissi
ontopr
ovidepuri
fycompressednat
ural
gas(
CNG) .Wewi
llprovi
de24hourstoour
 cust
omers.Wewil
lhaveal
sot
ucshop,
tir
eser
vice
andwor
kshopatourCNGstat
ion.
Thi
spr
ojectwi
llser
vet
hef
oll
owi
ngobj
ect
ives:
I
twil
lhel
pust
ostar
taprof
ileori
ent
edbusi
ness
whi
chhasahi
ghexpect
edfutur
egrowt
hrate.
Itwil
lhelpustargetpotent
ialmar
ketbyprovi
ding
envir
onmentfriendlyandquali
tyf
uel
ingservi
cesat
reasonablepr
ices.
I
twouldalsoser
veasacont
ri
but
ingt
othegr
owt
hof
CNGindustr
yinMansa.
Meansoff
inance:
Therearetwot ypesofmeansoffi
nance.Oneisfr
om
ownr esourcesandanotheri
staki
ngloanfr
om
bank.Theratioi
sofdebtandequit
yisof60:40.
Requi
rementofpr
oject
:
Forthecompl
eti
onofpr
ojectwewi
llhaver
equi
redt
he
fol
lowi
ngthi
ngs:
NOC'
srequi
redf
orCNGst
ati
on:
Noobject
ioncer
ti
ficat
ewillber
equi
redf
orfol
lowi
ng
depar
tmentthepri
ortothecommencementof
busi
ness.
 Concer
neddevel
opmentaut
hor
it
ytot
heci
ty.
Cent
ralBoar
dofr
evenue.
Oi
landgasr
egul
ator
yaut
hor
it
y.
NopersoncansetuptheCNGst ati
onwi t
houtfi
rst
obtai
ningl
icencefr
om t
heAuthori
ty.Af
tertaki
ng
l
icencewear eset
ti
ngupourCNGf ueli
ngstati
on.
Techni
calst
aff
:
Formoreearni
ngandforgivingef
fici
entservi
cesto
cust
omerswear eneedfortechni
calstaf
f.Sogivi
ng
opport
uni
ti
estoeducatedpeoplenearvil
leges.
Nont
echni
calst
aff
:
Ther
earetenormorepersonsrequi
redsi
nsimpl
e
worksofi
ndi
nglesseducatedpeopl
enearourwho
abl
etoworkandgivethem work.
Ri
sks:
Fol
lowi
ngr
isksar
eont
hewayt
othi
svent
ure:
1)I
nfl
ati
onr
ate:
10%inflati
onrat ehasbeenconsi deredwhile
makingt heprojecti
onsforcostofsal es,
oper
ationalexpensesandsal ar
ies.Thepricesfor
gas,
elect r
ici
ty,
oper at
ionalexpensesandst aff
 sal
ari
esar eincr
easedby10%everyyearasaresul
t
ofi
nflat
ion.Thesell
ingpri
ceofgashasbeen
i
ncreasedby5%ever yyear.
2)Hi
ghdepr
eci
ati
onr
ate:
Highdepreciat
ionrat
eofdif
ferentasset
swi l
lal
so
bear i
skfortheventur
ethatmayul t
imatel
y
decreasetheretur
nsoftheventure.
3)Curr
entpol
it
icalscenar
ioandl
awandor
der
si
tuat
ioni
nthecount r
y.
4)Avai
labi
li
tyofl
icencef
rom Oi
landGasRegul
ator
y
Author
it
y.

Proj
ectscopestat
ement:
Proj
ectscopedescr
ipt
ion:
Thi
spr
ojectwi
llser
vet
hef
oll
owi
ngobj
ect
ives:
oI
twil
lhel
pust
ostar
taprof
ileori
ent
edbusi
ness
whi
chhasahi
ghexpect
edfutur
egrowt
hrate.
oItwil
lhelpustargetpotent
ialmar
ketbyprovi
ding
envir
onmentfriendlyandquali
tyf
uel
ingservi
cesat
reasonablepr
ices.
oI
twoul
dalsoserveasacont
ri
but
ingt
othegr
owt
h
ofCNGi
ndustr
yinMansa.
Tar
getcust
omer
s:
Thetar
getcustomersfortheproposedproj
ect
woul
dbet hevehi
clesrunningonCNGf ueli
n
Mansaandit'
soutskir
ts.
NameofCNGst
ati
on:
ThenameofCNGst
ati
onwoul
dbe:
"
G&KCNGSt
ati
on"
Thechoi
ceoft
hisnameforourpr
ojecti
sbasedon
thef
ir
stwor
dofmybr ot
her'
snameandmeal so.
Legalst
atusofpr
oject
:
Theproposedlegalst
atusofourpr
ojectwoul
dbe
apartner
shipofmeandmybr ot
herbecauseof
thecapit
alandservi
ces.
Pr
oposedl
ocat
ion:
Thepr oposedl
ocat
ionsfort
heCNGfueli
ngstat
ion
thathasbeenconsi
deredinMansaci
tyareas
foll
ows:
oNearBusst
and
oMansa-
bat
hindar
oad
oKachehr
iroad
Locat
ion:
Forsetti
ngupaCNGf uelingstat
ion,
locationi
s
theprimefact
or.Aspert herequi
rementsoft he
governmentofPunjab,thefil
li
ngstati
onmustbe
sit
uatedinacommer cialarea.CNGfil
li
ngst ati
ons
arenotall
owedt obeinstall
edintheresidenti
al
areas.
Land:
Ami nimum ofninethousandsquar efeetofland
wit
hatl east75feetfrontopeningisr
equiredfor
i
nstall
ingCNGRef uelingstati
on.Anamountof
Rs.17mi ll
i
onhasbeenal locatedfort
he
acquisit
ionofni
net housandsquar ef
eetof
commer ci
all
andinMansa.
Bui
l
ding:
Therearecertai
nci vilwor
kstobecar r
iedoutat
theproposedlocation.Thecivi
lworkswoul dbe
carri
edoutonanar eaof2250squar efeet.The
restoftheareawillbef l
ooredwit
htulfti
les.Ci
vi
l
worksincludesthef oll
owing:
1.
Off
ice
2.
Cont
rolr
oom
 3.
Compr
essorandcascadest
orager
oom
4.
She'
dfordi
spenser
5.
Washr
oom andt
oil
ets
6.
Under
groundgaspi
pingandpowdercabel
s
7.
Floor
ing
Mat
eri
ali
nput
s:
Therearet womai ninputsarerequiredforCNG
fi
ll
ingstati
on, onei sthenaturalgasandsecond
i
st heelectr
icity.Thesponsoroft hepr oj
ect
requi
redt oobt ainboththeconnect i
onsf r
om t
he
rel
evantaut horiti
es.I
tisest
imat edthatthe
Rs.75000-forgasandel ectri
cit
y .
Fur
nit
ure&f
ixt
ures:
Furni
tureandf i
xturesmai nlyi
ncl
udetabl
e,
chair
s,sofas,
fans,carpet
, l
ight
setc.
Iti
sesti
mated
thatt
hef urni
tureandf i
xturesofRs.
85000-would
bepurchased.
Of
fi
ceequi
pment
:
Someof fi
ceequipment
sisalsorequi
redf
ort
he
proj
ect.
Apr ov
isi
onofRs.100000hasbeenmade
forof
fi
ceequipments.
Pr
ojectaccept
ancecr
it
eri
a:
Pr
ojectbudget
:
100%proj
ectbudgetwi
l
lbeaccept
edbymeandmy
brot
her
.
Pr
ocur
ementofmachi
ner
yandequi
pment
:
Itwi
l
lbeensur
edt
hatpr
ocur
ementofmachi
ner
y
andequi
pmentwi
l
lbedoneatr
ightt
ime.
Regul
ati
onandl
i
cence:
1.
Licencef
rom OGRA
2.
Cer
ti
fi
cat
ebyHDI
P
3.
NOC
Del
i
ver
abl
eaccept
ance:
Thedeli
verabl
ewil
lbeaccept
edonlyift
he
const
ruct
ionofCNGstati
onwillbecomplet
ed
accor
dingtothepl
an.

Pr
ojectconst
rai
nts:
1.
Loanappr
ovali
sthebi
ggestconst
rai
nti
npr
oject
.
2.
Onl
yfourcar
scanbeser
vedatonet
ime.
 3.
Thechosenequi
pmentcanr
efuelappr
oxi
mat
ely50
car
sperhour.
Pr
ojectassumpt
ions:
1.
Wear
etaki
ng360day
say
ear
.
2.
Therewil
lbenol
oadsheddi
ngproblem f
rom
Augustandwear
estart
ingfr
om June,2021and
loadsheddi
ngwi
l
lbe3hr saday
.
3.
Afteroney
eart
her
ewi
l
lbenol
oadsheddi
ngi
nthe
year2021.
4.Weareassumi
nga15%i
ncr
easei
nwagesev
ery
y
ear
.
5.
Over
headsar
e5%ofsal
es.
6.
Erect
ionf
ori
mpr
ovedmachi
ner
yis15%.
7.
Pri
cesoft
hemachi
ner
ywi
l
lbei
ncr
easei
nthe
fut
ure.
8.
Itisalsoassumedthatt
heneedofCNGwi
l
lbe
increasedinfut
ure.
9.
Wear
eusi
ngst
rai
ghtl
i
nemet
hodf
ordepr
eci
ati
on.
10.I
ncomet
axwi
l
lbechar
gedat35
11.Thedebtt
oequi
tyr
ati
owi
l
lbe60:
40r
espect
ivel
y.
12.Ther
ewi
l
lbet
hebusi
nessofCNGf
il
li
ng.
13.Otherincomesgeneratedfr
om thetuckshop,
ti
re
serv
iceshopandalsofrom oi
lexchangeand
vehi
cleservi
ceshop.
14.Thecostandsal
esofCNGwi
l
lbei
ncr
ease5%
eachy
ear.