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A

PROJECT REPORT

ON

STUDY OF CNG AND LPG BASED VEHICLE SYSTEM IN PUNE AND AHMEDABAD

FOR

SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULFILMENT OF 2 YEARS FULL TIME COURSE

MASTERS IN BUSINESS ADMINISTRATION

SUBMITTED BY CHANDRESH PAREKH

(BATCH 2006-07)

BRACT S VISHWAKARMA INSTITUTE OF MANAGEMENT

S. NO. 3/4 BEHIND LAXMI NAGAR, KONDHWA (BUDRUK), PUNE-411048

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Acknowledgement

It is always a difficult task to acknowledge all those who have been of tremendous help in an academic project of this nature and magnitude nevertheless, I have made a sincere attempt to express my gratitude to all those who have contributed to the successful completion of this project through this project report.

As I present this report on Study of CNG and LPG Based System in Pune and Ahmedabad I am aware of the humanity and gratitude towards all the individuals who have so kindly offered me their time, skill, knowledge, advice, and facilities, or guidance.

I am extremely grateful to Mr. Shailendra Singh

Asst. Manager Marketing GSPC GAS COMPANY LTD for giving his valuable input and opportunity to develop this project and making all the resources available to me with the intention of success of this project.

I would also like to thank Sanjiv Vaijanpurkar

Dy. Env Engineer, GUJARAT POLLUTION CONTROL BOARD (GPCB) for his idea, advice, knowledge, and about all his support throughout this project

Would also o like to express my gratitude to Mr. Chinmoy Tikader

Technical Engineer, HINDUSTAN PETROLEUM CORPORATION (HPCL) for being in constant touch with me through E-mails and thus helping me in collecting and compiling data and preparing the report.

I also take this opportunity to express my deepest gratitude to my Project Guide and our director Dr. Sharad Joshi for his constant support, guidance and encouragement and thus being a constant source of inspiration for me

Last but not the least I would like to thank my parents, all the employees and all my friends who have always been a strong support during the entire course of my project and without their co-operation the completion of this project would not have been possible.

Chandresh Parekh

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Title Index

S.r. No Topic Page No

1 EXECUTIVE SUMMARY 1

2 OBJECTIVE AND SCOPE OF THE PROJECT

2

3 THEORETICAL BACKGROUND 3

4 RESEARCH METHODOLOGY 8

5 DATA ANALYSIS 10

6 FINDINGS 35

7 LIMITATIONS 36

8 CONCLUSION 37

9 RECOMMENDATIONS 38

10 ABBREVATIONS 39

11 BIBLIOGRAPHY 40

12 ANNEXURE 41

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Index of Tables, Charts and Diagrams

S.r. no Table / Chart Page No

1 Contribution To Air Pollution By Various Sources

4

2 Composition of CNG and LPG 5

3 Comparative study of CNG and LPG with other fuel on various

emission factors

5

4 Strategies of Reduction in Emission Due to Vehicles in

India

7

5 Gas Supply Grid in Gujarat 10

6 Gas Sectors in Gujarat 11

7 Plan Layout Of HPCL Mother Station

12

8 Description and Functionalities of Each element in CNG Mother

Station

13

9 Typical CNG Mother Station 14

10 Comparative Chart Showing Feature Of 2 Stroke and 4

Stroke CNG Autos

18

11 Pictures Of CNG LPG Auto and CNG Dispensing Unit and LPG

Fitted 2 Wheeler

19,23

13 Statement Showing

Comparative Cost Analysis of CNG and Diesel Vehicle Per Km

23

14 No. of CNG Stations of Leading Oil Companies in Ahmd

24

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15 No of LPG Stations in Pune and

Ahmd 25

16 No. of CNG Vehicles in Ahmd 26

17 No of Vehicles Converted To LPG in Pune

27

18 Hesitation For Conversion To LPG Autos in Pune

26

19 Post Problems in CNG Autos 29

20 Hesitation For CNG and LPG Conversion in Private Vehicles

30

21 Public Response After introduction Of CNG Buses

31

22 Pre CNG and Post CNG RSPM Levels in Ahmd

32

23 Catering Level Of AMTS 33

24 Price Comparison Of Various Kits

34

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1. Executive Summary

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1. Executive summary

Automobiles are a necessary evil , while they have made living easy and convenient;

they have also made human life more complicated and vulnerable to both toxic

emissions and an increased risk of accidents. As we know that the petrol and diesel

prices are shooting up each month, apart from this, these fuels are polluting the

environment to the worst case possible by emitting harmful gases in the environment.

Thus it becomes necessary to look for a better alternative than petrol and diesel which

serves in terms of economy and health.

The Title of the project is Study of CNG and LPG Based Vehicle System in Pune

and Ahmedabad This project deals in this hot issue of CNG and LPG that can be

used as a better fuel alternative in the future and thus to some extent gives all those

necessary information needed to switch over to CNG and LPG based transport system

in any city. Personally it has broadened my horizon in understanding the problem and

helped me in suggesting few solutions for the problem.

The location selected for carrying the project were the City of Pune and Ahmedabad.

The duration of the project in Pune was 20 days and 25 days in Ahmedabad thus the

project survey was concluded in 45 days in all. This project was divided into 2 parts,

the first part included survey for LPG related details in Pune city and the second part

was survey for CNG related details in Ahmedabad. Both surveys included meeting the

authorities and bodies in concern like municipal corporations, state and public transport

systems, oil companies etc and interviewing general public and auto drivers for their

reaction on conversion to LPG and CNG in both cities.

The project gave a thorough understanding about the CNG and LPG related details like;

1. Infrastructure requirements and the cost to set up the CNG and LPG transport related system

2. Response of the general public and the people involved in setting up the system

3. Understanding the functioning of different elements involved in system

4. Technical aspects related to transportation and supply of CNG

5. Pros and Cons of the system

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2. Objective and Scope of the Project

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2. Objective & Scope of the project

Title of the project

Study of CNG and LPG conversion in selected cities

Different objective of the project

Primary objective

To understand the CNG and LPG conversion system in Pune and

Ahmedabad beginning from source to supply of the fuel

Secondary Objective

To know public acceptance level for the new system

To serve the project as text book study for cities like Pune for

installation of this system

Scope of the project

Area of operation

Area of operation included interviewing the officials in oil companies,

government authorities, and general public, private firms, etc.

The duration of the project in Pune was 20 days and 25 days in Ahmedabad

thus the project survey was concluded in 45 days in all.

Location area covered

Survey was conducted in city of Pune and Ahmedabad and sampling

included Random and Deliberate sampling technique

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Theoretical Background

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3. Theoretical Background

Introduction

Automobiles are a necessary evil , while they have made living easy and

convenient; they have also made human life more complicated and vulnerable

to both toxic emissions and an increased risk of accidents

The rapid growth in motor vehicle activity in India and other rapidly

industrializing low-income countries is contributing to high levels of urban air

pollution, among other adverse socioeconomic, environmental, health, and

welfare impacts. To overcome there should be emission controls and air quality

management programs

Air Quality Management

An organized effort for achieving ambient air quality standards to

minimize aesthetic, environmental and health risks

A systematic planning to reduce / regulate pollutant emissions and

ensuring continuous improvement

Factors Contributing to Urban Air Pollution in India

There are several factors that are contributing to toxic emissions, major of them

in urban and sub urban which are no less to be called as Toxic Slums.

Some of the factors are:

High vehicular growth

Burning of fossil fuel

Increased industrial activity

Small scale industries

Urban Population growth

unplanned- slums

Rapid increase in vehicle miles traveled

Slow increase of road coverage

Traffic jams

Fuel quality- adulteration

Social and Economic constraints in adopting control measures

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Contribution to air pollution by various sources

Back ground of the subject

Hon ble Supreme Court of India is considering a Public Interest Litigation

regarding the pollution in some cities like Delhi, Ahmedabad, Mumbai,

Bangalore etc in India. Solapur and Pune have been subsequently included in

the petition and directions have been given by the Apex Court to prepare Action

Plans for these cities which inter-alias should include the pollution reduction

strategy in those cities.

In August 2003, Hon ble Supreme Court of India has issued a directive to the

Union of India and the state governments to draw plans to introduce clean fuels

in 11 cities apart from the existing cities of Delhi and Mumbai.

These are:

Bhurelal Authority has been appointed for reviewing the actions taken by the

respective States/ SPCBs on the implementation of the directives of the Hon ble

Supreme Court of India to control the RSPM and SPM levels in these cities

Under its Project Blue Sky, GAIL has already drawn plans to implement city

gas projects in the five cities of Kanpur, Lucknow, Agra, Bareilly and Pune in

phases at an estimated investment of Rs. 554 crores (equivalent to 118 Million

USD).

INDUSTRY25%

TRANSPORT70%

OTHERS5%

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With the increasing number of pollutants in Ahmedabad air and with the

background of increasing trend in the use of CNG in the other parts of the

world. The Hon ble Supreme Court had directed the Government of India to

take initiative in promoting the use of CNG, an established clean fuel in the

world and as transport fuel in Ahmedabad to control the increasing levels of

ambient air pollution.

What are CNG and LPG?

CNG is the abbreviated form of Compressed Natural Gas. The Natural Gas has

less energy density as compared to Liquid Fuel and hence it is compressed to

over 200 Kg/cm² (g) pressure to make it CNG for use in the automobile sector.

In its natural form it is colorless, odorless, non-toxic and non-carcinogenic.

However, this natural gas is mixed with an odorant to add flavor similar to the

odor of LPG from a domestic cylinder so as to facilitate detection of its

leakage.:

LPG is a by-product of natural gas processing or a product that comes from

crude oil refining and is composed primarily of propane and butane with

smaller amounts of propylene and butylenes. Since LPG is largely propane, the

characteristics of propane sometimes are taken as a close approximation to

those of LPG

Comparative study of CNG and LPG with other fuel on various emission factors

FUEL/ EMISSIONS CO2 UHC CO NOx SOx PM PETROL 22,000 85 634 78 8.3 1.1 DIESEL 21,000 21 106 108 21 12.5 LPG 18,200 18 168 37 0.38 0.29 CNG 16,275 5.6 22.2 25.8 0.15 0.29

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Major Benefits of CNG and LPG are:

1. Cleaner Environment due to improvement in Ambient Air Quality

2. Economical Fuel for the customers

3. Readily available Natural Gas pipeline

4. Reduction in emissions.

5. Very less carbon build-up increases life of engine parts like spark plugs.

6. Time needed Fueling is also similar to diesel or gasoline.

7. Service life of a vehicle increases with LPG.

8. Higher octane number.

Need for Alternate Fuel program in India

With India emerging as a global player in world market .it becomes the

responsibility of a nation to be concern about its environment to have a global

stand in world ecology.

Some of the prime concerns for India are:

1. Rising urban pollution

2. Rising global concern for environment

3. Increasing vehicular pollution from conventional fuels

4. Rising public awareness & expectations

5. Exponential rise in pollution related diseases

6. Economics

7. Fuel security

Government s role in setting up CNG and LPG based Transport System

1. State Governments support for marketing of AutoLPG and CNG

2. Allotment of additional land at existing Retail Outlets located in Govt.

lands for setting up ALDS and CNG dispensing units

3. NOC for Additional Land

4. Permission to Retrofitters for marketing of Conversion Kits

5. Endorsement of RC Books of vehicles converted to Auto LPG and CNG

6. Stringent emission checks of vehicles to be enforced

7. Stringent deterrents for violators

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Strategies of Reduction in Emission Due to Vehicles in India

Identification of Potential Traffic Control Measures

Development of Criteria for

Transportation Control Measures

Screening of Transportation Control Measures & Selection of Measures

Choosing a Base Case

Analysis of Traffic Control Measures

Analysis of Regional Traffic Effects

Analysis and Evaluation of Changes in Regional Emissions and Air Quality

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4. Research Methodology

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4. Research Methodology

Research

It can be defined as a scientific and systematic search for pertinent information

on specific topic.

It is also a careful investigation or inquiry especially through search for new

facts in any branch of knowledge or one can say that it is systematic away to

gain knowledge

Type of Research Undertaken

Descriptive study is a fact finding investigation with adequate interpretation .It

is the simplest type of research .It is more specific than an explanatory study, as

it has focus on particular aspects in the dimensions of the problem studied. It is

designed together descriptive information and provides information for

formulating more sophisticated studies .Data are collected by using one or more

appropriate methods like observation ,interviewing and preparing questionnaire

Different sources and methods of data collection

1. Questionnaire was given to public for their response on CNG and LPG

system being introduced for public and private transport in Ahmedabad and

Pune respectively

2. A formal Interview technique was used to get information from top

executives in all well recognized private and public organization dealing

with CNG and auto LPG directly or indirectly on and an informal interview

or discussion technique was used in some private outlets and auto drivers

and private vehicle owners

3. Observation was done at the gas stations to observe how the situation is

different from that of a petrol pump and at kit installer s place.

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Primary and secondary data collection

1. Primary data are those which are collected afresh and for the first time and

thus happening to be original in character.

In the project primary data was collected through means of questionnaire to

public using public transport, auto drivers and private vehicle owners

2. Secondary data are those which have been already collected by some one

else and which have been already passed through process.

This was collected while interviewing some officials as they handed over

some statistical data directly in the form of printed copy and also through

internet.

Sampling Sample is the small group taken under consideration from the total group. The

small group represents the total group, in the project the market segment, which

was ask to be studied was Mumbai market but there was a limitation of the

project to approach all the stockiest, dealers and retailers of the city. The areas

selected for the sample are present further in annexure.

Sample Space - Pune and Ahmedabad

Samples

Municipal Transport in Ahmedabad and Pune

respectively

General Public

Private and Public organization dealing with CNG

and Auto LPG directly or indirectly and an informal

interview or discussion technique was used in some

private outlets and auto drivers and private vehicle

owners

Sampling Technique - Random Sampling

Contact method - Direct Interview and Observation Sample Size - Sample size

LPG Autos 80 CNG Autos 75

Private Vehicles 25 General Public 25

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5. Data Analysis

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5. Data Analysis

Study of elements involved in CNG vehicle system

As we know that implanting a CNG system in any place is not an easy task, it

takes high level of planning and investment. It is not easy as installing LPG

based system where the planning and investment in comparatively low.

Installing a CNG system needs a proper and continuous supply, infrastructure,

safety precaution, technical know how and finally awareness in people to adapt

the change over

Let us take an example of Ahmedabad city and try to under stand how the

whole system functions from origin to engine.

Supply

Commissioned

Under construction

RoU in Progress

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Gas Sectors in Gujarat

Companies Area Reliance LNG project / Exploratio Jamnagar, Saurashtra

Essar Oil Jamnagar, Saurashtra

Petronet LNG Bharuch, South Gujarat.

GAIL

LPG Bharuch, South Gujarat

British Gas - LNG terminal Pipavav, Saurashtra

Shell - LNG terminal Hazira, South Gujarat

Gujarat Petronet Gas Network Vapi to Mehsana & Pipavav to Ahmedabd Wimco

LPG Jamnagar, Saurashtra

Jamnagar based Pipelines LPG, Crude oil, product & gas.

IOC Baroda

About 75 percent of India s known reserves are located in the Bombay High

region and onshore and offshore regions of Gujarat. Arrival of LNG imports at

Dahej have increased gas availability. HBJ pipeline originates from Hazira and

runs through industrial belt of South Gujarat .State-wide gas grid under

implementation. There are 2 LNG Terminals at Dahej & Hazira; this gas is at

low pressure before reaching the mother station where it is compressed to 250

bars. The Gas Grid Project is 2200 km is a long pipeline with 60-70 MMCD

capacity. The task of GSPL (Gujarat state Petronet limited) is subsidiary

company of GSPC (Gujarat state petroleum corporation limited).GSPC

purchase gas from various sources like Petronet LNG, Shell Hazira, Niko etc.

GSPL is doing the transportation of these gas thru there pipelines. GSPL has

one segment of pipeline called BKPL (Baroda-Kalol pipeline) which is 24"

diameter. HPCL has tapped from this line with a 4" line to receive in our

mother station. Pipelines are made of carbon steel seamless pipe, with

polyethylene coating on it to protect it from corrosion. CNG station are as per

petroleum rules 1976,gas cylinder rules 1981,NZS 5425 1980

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Gas Station

Plan layout of HPCL mother station

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Legend

Particular Measurement ( 00)

1. HT substation 40 * 40 2. DG foundation 30 * 62 3. Transformer room 40 * 40 4. Central stores 8.7m * 12.9m 5. AUR room 49 * 35 6. Electrical room 87 * 40 7. Cascade (1) 56 * 19

a. Cascade (2) 56 * 19 b. Cascade (future) 56 * 19

8. Compressor(1) 55 * 35 a. Compressor(2) 55 * 35 b. Compressor(future) 55 * 35

9. Odorizing unit 20 * 70 10. Office bldg 90 * 120 11. Mobile cascade filling 80 * 120 12. Car dispenser station 160 * 120 13. Bus dispenser station 160 * 120 14. Green belt

Description and functionalities of each of the legend

S,r. no

Particulars Description

1 HT Substation High Tension Substation (power received at 11000 KV at that yard)

2 DG Foundation It is foundation of generator is being used at power failure

3 Transformer Room Indoor type transformer has been kept in that room. It steps down 11000 KV to 440 volt

4 Central Stores Store room of spares used at Mother Station

5 AUR Room AVR Room (Automatic Voltage regulator room )

6 Electrical Room Electrical room has all the MCCB Panels in that room along with LDB (Lighting distribution panel, Emergency panels)

7 Green Belt It is advised form Pollution control board to have greenery in any industry or installation the maximum. Green belt is a patch of Lawn or garden.

8 Odorizing unit To ethyl mercaptan for detection CNG during leakage

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Typical CNG Mother Station

Once the gas reaches the mother station it is then compressed to 250 Bars with

the help of compressors, prior to this the gas is mixed with odorizing gas which

gives the gas a typical smell, so it becomes easier to detect the gas .then the gas

is transformed to fixed cascade where the gas is stored and then it is distributed

to either dispensing or mobile cascade on buses to be delivered to other

daughter stations On an average 325-330 kg of gas is filled in one bus and 1 bus

takes 15 min to fill completely. 11(capacity) * 31(cylinders) * 50(buses) kg of

CNG from HPCL mother station to daughter stations is transferred through bus

cascades daily. CNG dispensing capacity in Ahmedabad is around, 2, 50,000

kgs/day. CNG dispensed (sale) at present: around 1, 50,000 kgs /day.

Cascades are filled at low pressure and out at high pressure at daughter station.

Fillings are done at 30 degree in cascade. Leakage is detected through whistle

and surf solution. Cost of one trip of bus depends upon distance of daughter

station. As we send thru Mobile cascades it is costlier than transportation thru

pipeline. Average spending is Rs 1.6/Kg (HPCL)on transportation of CNG

from mother station to daughter station. It varies on the distance of mother

station to daughter station.

Average no autos visit HPCL mother station is 1200. Vehicle can be filled upto

250m bar pr. There is no harm in it. But generally in crowdie outlets it is

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common observations vehicle is not filled up at 250m bar pr. because,

Compressor itself supplies at pr 250 bar. Then there is must be some drop of

pressure (10 bars to 15 bars) to dispenser. If no of dispenser is more and

capacity of compressor is less, then it takes time to build up pressure upto 250

bars. So they are being filled up at lesser pressure. Special safety norm are to be

followed in compressor area, electrical room, while filling the cascades,

dispensing gas in auto and also for the auto drivers who come to station for

filling their autos. Even private bus come in CNG .The bus has 130 ltr capacity

tanks which gives an avg of 4 km/kg .Price of the kits is 4 lacs. Kits are bought

from Bombay. Only 3 bus on an average per day visit at HPCL station. Only

Rajdhani and Rajwadi transport from Ahmd to Baroda and south Gujarat visit

the pump.

Minimum ITI is required for operation of compressor, attending of breakdowns

of dispensers. Minimum Graduate engineers are required to run a CNG station.

Different people need different type of training Driveway fillers, compressor

operator, fitter, electrician, supervisor, LCV drivers all can be trained through

in house training program.

Particulars about company owned CNG and LPG gas stations

LPG gas stations - Pune

1. LPG gas stations Started 1.5 years back i.e. in 2004-05

2. Currently there are 8 LPG stations ( Solapur road -3 , Nagar road 2 , B.P

3 , Chinchwad (WIP) 3 )

3. LPG supply is from URAN(Mumbai) through bullet tankers

4. It is requires to take care of safety precautions while transferring and

dispensing the fuel

5. There Cannot be stand alone LPG station unlike CNG gas stations

6. Space required for the installation of LPG station is 18m * 20 as per norms

7. License problem for LPG gas station due to varied norms regarding space

and safety

8. Setting up a LPG station costs around 50 lacs

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IOC LPG station - Ahmd

1. LPG gas stations Started 2 years back i.e. in 2004

2. LPG supply is from Gujarat Refinery

3. Trip cost 784 800 Rs per ton from site to LPG station

4. Safety measures as per OISD, CCOE are followed

5. It takes around 3 4 months to set up one LPG station

6. LPG vehicle gives more avg than CNG vehicle

7. Commission to retailers on Auto LPG is Rs1200/ton

8. Training is given to workers on safety and proper handling of gas

9. Machinery for LPG station is bought from L & T

CNG gas stations Ahmd

1. CNG gas stations Started 2 years back i.e. in 2004

2. CNG gas stations can function as stand alone or in collaboration with other

companies also.

3. Safety measures as per OISD, CCOE are followed

4. Petrol demand has reduced in Ahmd due increase CNG vehicles

5. Machinery is bought from Italy, Germany, India, New Zealand,

6. CNG tax structure (%) 12.5 % vat, 10.2 % service tax, 16 % excise duty, 3

% Octroi

7. CNG is mixed with odorizing chemical to detect smell i.e. ethyl mercaptan

8. Transferred through Pipes and bullet casket

9. Requires uninterrupted power for compressors, odorizing unit etc.

10. Petrol commission 70 paisa, CNG commission 1 Re.

11. Costing of 1 CNG station.

Compressor 1cr

Dispenser 20 lacs

Cascade 12 lacs

others 5 lacs Total ~ 1.37 - 1.50 Cr

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Testing / approving authorities for CNG kits and cylinders

For CNG conversion kits.

Automotive Research Association of India, Pune. ARAI

Vehicle Research Development and Establishment, Ahmednagar

Indian Institute of Petroleum, Dehradun.

For CNG cylinders.

Chief Controller of Explosives, Nagpur.

BIS, New Delhi.

Approved CNG Kits and cylinders used

For 4 wheelers :

Transenergy, India.

Tartarini, Italy

Landi Renzo, Italy

Lovato, Italy

MTM s.r.l, Italy,

Bedini, Italy.

For 3 wheelers :

Vanaz, India

Sagas, India

MTM s.r.l, Italy.

Bedini, Italy

Cylinders :

Everest Kanto, India.

Maruti Koatsu, India.

BPCL, India.

Faber, Italy

Worthington, USA.

Argentoil, Argentina

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CNG kits are the costliest amonst all the available types of kits .4 wheeler CNG

kits are the most expensive (40 k) this might be one of the reasons for less of

private vehicles getting converted to CNG

3 wheeler LPG kits are the cheapest. As per Vanaz of the CNG and LPG kit

Dealer major problems are Line cleaning and filter cleaning related. Some other

are Pick up problem, average and starting are general problem. These dealers do

not give any financial assistance to customers. Mainly Maruti, Hyundai, Omni,

Santro are the cars that come for conversion in both segments i.e. CNG and

LPG

3 wheeler CNG kits are sold more i.e. 7 kits per day followed by LPG 4

wheeler kits i.e. 4 on avg daily whereas 4 wheeler CNG and 3 wheeler LPG kits

are sold in less no. Price of 3 wheeler kit: - ~15,000 + 200(service) + 150(paper

work) in cash and takes around 3 hrs for installation in auto. If taken on Loan: -

17,500 + 200(service) + 150(paper work). Employees are trained before actual

installation is allowed. 1 year warranty on kits is given.

Company fitted CNG autos

There are 26500 CNG autos in Ahmd which include about 13,500 new CNG

(OEM) rickshaws, and rest are conversion kit based. Demand of CNG auto

(OEM) has increased by 2%.unfortunately there are only 2 dealers in Ahmd

(Deepkamal and Manan motors) .1000 autos are sold per month. They keep

Stock of 50 each 2 and 4 stroke autos. It takes 2 days of delivery, assembling of

accessories at Deepkamal kits come pre fitted from company i.e. from Pune

Bajaj and Waluj (Aurangabad)

Comparative chart showing feature of 2 stroke and 4 stroke CNG Autos

Feature 4 stroke 2 stroke Average 50-55 60-65 Start Self Kick Price 1.19 Lacs 1.35 Lacs Oil 2t Oil No Oil Kits Minda,Vanaz Minda Tech Prblem Less More Sales Less More

- 29 -

.

CNG Auto

CNG Dispensing Unit

LPG Gas kit fitted Auto

- 30 -

LPG and CNG PUC CENTRE

There is tremendous change in the PUC centers as compared to previous which

were easily manipulated. After the introduction of CNG in the city, to keep a

regular check in the emission norms of CNG vehicles, advanced PUC centers

have being introduced which are completely computerized. These machines do

not allow any kind of manipulation The emissions norms are pre fed in to the

computer, receipt is printed from printer only if the vehicle is following the pre

fed emission norms. The cost to set up such PUC centre is comparatively high

as every thing is computerized. It Costs around 1.90 lacs (gas analyzer

computer, printer, fees) to set up a PUC center

Revised idle emission norms for (CO) and (HC) W.E.F 1-10-04 Sr no

Vehicle type Manufactured before(31 3 200)

Manugactured After(31/3/2000)

Bharat stage II

CNG/LPG

CO% HC CO%

HC CO%

HC CO%

HC

1 2 wheeler 2 stroke 4.5 9000 - 6000 - - - - 2 2 wheeler 4 stroke 4.5 9000 3.5 4500 - - - - 3 3 wheeler 2 stroke 4.5 9000 - 4500 - - - - 4 3 wheeler 4 stroke 4.5 9000 3.5 4500 - - - - 5 4 wheeler

(petrol/CNG/LPG)(Bharat stage II)

3.0 1500 3.0 1500 0.5 750 0.5 750

Government Transport System in Ahmedabad

There is only Single depot I Ahmd unlike other cities having more than 1 depot

like Pune. At one stage when the municipal transport in Ahmd was thinking of

privatizing the transport system, the decision taken by Bhurelal committee to

convert the transport system into CNG based proved to be savior for the

municipal transport, it has not given profits but shown significant reduction in

losses for the Govt as a result today Ahmedabd municipal transport catering

level has risen to 14% as compared to 7% before the introduction of CNG

buses. A detailed study is mentioned in the following section.

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Since 2004-2005, today no of CNG buses of AMTS on road is 400 and above

this it has placed orders for 210 more CNG buses that are likely to be on road

in six months increasing the fleet to 610. In this fleet there are buses that are

taken from private companies on contract basis. Daily requirement per bus is 70

kg of CNG. These buses produce an average of 5.3 Km/kg. Initially Buses were

running on routes were filling is easier and the route is economical to cover up

the cost of plying the buses on that route and then expand to all the routes.

Talking about the GSRTC, currently there are 200 CNG buses in the State. Out

of which 90 CNG buses are plying on Ahmedabad - Gandhinagar route. 50

more CNG buses are likely to be put up on Ahmedabad- Gandhinagar route in

next six months to make entire fleet of 140 CNG buses on this route. GRTC has

purchased these buses from Leyland Tata. The new bus costs around15.50 lac.

The Old buses are scrapped at 7 lacs. GRTC had 5 biodiesel on trial base, but

did not work as availability and cost were the issue of concern. All the CNG

related issues are taken care by Gujarat CNG act.

Some common issues related to GSRTC and AMTS

1. Buses were bought in lots to avoid the problem of delivery during

purchasing

2. Preventive maintenance training given to drivers, conductors and shop floor

workers

3. EURO II and EURO III STD buses are purchased

4. Special gas filling station for these buses to avoid unnecessary rush and

easy accessibility to fuel.

- 32 -

Pune is implementing the LPG system efficiently, when it comes to CNG ,after

meeting one of the officials at the Swargate depot and asking him about the

launch of CNG plan his views were as follows:-

1. Plan to replace buses still can run for next 4 years to buy 300 to 400 new

buses

2. The plan has to be implemented in phases and not at once as it will put

pressure on the authorities at financial and administrative level.

3. A proper coordinated way of planning and implementation should be

amongst all the authorities and departments taking part in the project and

also at the same time should be responsible for it

4. Infrastructure needs to be in place to make the plan properly functional like

the depot capacity needs to increase to accommodate the new fleet of buses.

5. Technically trained Manpower should be ready .

6. The road capacity needs to be widened so that the new fleet does not make

congestion on the roads.

7. This in turn will increase the fuel demand which should be met timely, for

this the no of fuel station should be expanded.

8. Demands should be met with adequate and timely supply.

9. All rules and regulation should be properly drafted before the plan comes to

existence.

10. New system should not add financial burden on the general public, so a

well planned strategy should be made for the smooth and long running of

the system

11. The authorities should be ready to bear the loss or enjoy the benefit of the

new system.

- 33 -

Statement showing comparative cost analysis of CNG and diesel vehicle per km

Sr no Particulars CNG vehicle Diesel vehicle Difference 1. Capital cost in Rs(chassis

and body building) 16.70 lacs 11.98 lacs +4.72

2. KMPL 5.30 5.60 -0.30

3. Fuel cost in Rs 27.57 per kg 35.53 per ltr -7.76

4. Maintenance cost in paise 97 97 0

5. Spare parts cost in paise 30 30 0

CNG and LPG in two wheelers

Weight of kit, lack of space and safety issues adds to the difficulty in designing

and thus retricting 2 wheeler CNG and LPG vehicles to be adopted legally. But

still Many cities have already adopted it illegally like kozhikode, Bangalore

(Dhanyalaksmi Bangalore) etc.Illegal installation of gas kits costs around Rs

3000 ( ACTIVA) gives an economic average of 20 paise per km. Bajaj Auto

Ltd is to come up with first ever LPG based 2 wheeler .

- 34 -

1. No. of CNG stations of leading oil companies In Ahmd

Interpretation

1. Adani been private player has 25 CNG stations whereas HPCL even

though been Govt undertaking , just have 10 CNG stations which means

there lies scope for private players to invest in these growing business as

Govt is giving a helping hand to it.

2. The above CNG stations include mother stations, booster station and

daughter stations as well.

Leading Oil Companies Nos Adanis 25 HPCL 10 Total 35

No of CNG Gas stations of leading oil companies

25, 71%

10, 29%

Adanis

HPCL

- 35 -

2. No of LPG stations in Pune and Ahmd

City Nos Ahmedabad 10 Pune 7

LPG stations in Pune and Ahmedabad

10

7

0

2

4

6

8

10

12

Ahmedabad Pune

City

No

s

LPG station

Interpretation

Ahmedabad being metro city just has 10 LPG stations on the other hand Pune

having ¾ of population than Pune has 7 stations secondly Ahmedabad had

implemented the system long back than Pune then too it has just got t 10 which

means Ahmedabad not stressing on LPG whereas Pune emphasizing on LPG

and planning to install more 10 LPG station in next 8 months,which signifies

that there must be some constraint for Ahmedabad in terms of using LPG being

used as Auto fuel

- 36 -

3. No of CNG and LPG stations in Ahmd

Type Nos CNG 35 LPG 10 Total 45

Interpretations

From the above graph we can say that 78% (35) of gas stations are of CNG and

remaining 22% (10) is of LPG which says that CNG is being used as dominant

Alternative fuel than LPG in Ahmd. We can also interpret that there may be

strong infrastructural support for CNG which may not be in the case of LPG.

No of CNG and LPG stations in Ahmd

10, 22%

35, 78%

CNG

LPG

- 37 -

4. No. of CNG vehicles in Ahmd

Type Nos Autos 26500

AMTS Buses 400 GSRTC Buses 200 private vehicle 500

Total 27600

CNG vehicles in Ahmd

400, 1%

500, 2%

200, 1%26500, 96%

Autos

AMTS Buses

GSRTC Buses

private vehicle

Interpretation

1. 96 % of CNG vehicles are autos

2. GSRTC and AMTS i.e. Govt transport is having a slow progress as it just

contributes to only 2% in total vehicles converted

3. Emphasis is not given to private vehicle conversion as it contributes to only

2%

- 38 -

5. No of vehicles converted to LPG in Pune

Type Nos Auto: 4600

3 wheeler (goods) : 780 LMV cars: 10000

Total 15380

No of LPG vehicles in pune

4600, 30%

780, 5%10000, 65%

Auto:

3 wheeler (goods) :

LMV cars:

Interpretation

1. No Govt transport is converted to LPG

2. 65% of vehicles are private vehicles which shows relatively good awareness

amongst citizens

3. Auto conversion to LPG is not to the mark in nos (4600 only) as compared

to the total of more than 10000 autos in Pune

- 39 -

6. Hesitation for conversion to LPG Autos in Pune

Factors , Rank Nos Not enough pumps , I 28 Technical problems , II 15

No knowledgeable service centers , III 10 Loan problems , IV 7

Others , V 20 Total 80

Hesitation for LPG Autos in Pune

28

1510 7

20

05

1015202530

Not

eno

ugh

pum

ps ,

I

Tec

hnic

alpr

oble

ms

, II

No

know

ldge

abl

e se

rvic

ece

nter

s , I

II

Loan

prob

lem

s , I

V

Oth

ers

, V

No

s

Hesitation

Interpretation

Even though LPG serves as clean and economical fuel there are some

drawbacks when it comes to application part of it like:

1. Most the complain are been received for not setting up enough pumps in

the city

2. There has been some technical problems while handling LPG based autos

which is second major problem faced by the owners

3. Other problems include kit problem, renting better than ownership as no

maintenance tension etc

- 40 -

7. Post problems in CNG Autos

Problems , Rank Nos Start problem , I 29

Pick up problem , II 14 Maintenance problem , II 14

Earnings reduced as no of autos increased , III 10 Others , IV 8

Total 75

Post Problems in CNG Auto

29

14 1410 8

05

101520253035

Start

proble

m , I

Pick up

prob

lem ,

II

Main

tena

nce p

ro...

Earnin

gs re

duce

d...

Other

s , V

Problems

Interpretation

Even though CNG serves as clean and economical fuel there are some

drawbacks when it comes to application part of it like:

1. Most the complain are been received for start up problems

2. There has been some technical problems like pick up and maintenance

while handling CNG based autos which is second major problem faced by

the owners

3. Other problems include finance problem, accessories are costly etc.

- 41 -

8. Hesitation for CNG and LPG conversion in private vehicles

Factors Nos

Not service and proper kit fitting , I 24

High kit price (40 K CNG, 22 K LPG) , II 15

Buy company fitted cars , III 14

Technical problem , risks , IV 7

Hesitation

24

15 14

7

0

5

10

15

20

25

30

Not serviceand proper kit

fitting , I

High kit price(40 K CNG,

22 K LPG) , II

Buy companyfitted cars , III

Technicalproblem ,risks , IV

Hesitation

Interpretations

As far as private vehicles are concerned, people are hesitant to convert their

vehicle to LPG and CNG as they fear

1. Mainly for service and kit guarantee

2. Secondly the price is matter of concern for CNG kit as it cost around 40,000

so people are waiting it to reduce.

3. Interestingly people are aware of launch of LPG and CNG based cars and

thus are hesitant to convert their vehicles to LPG and CNG which they feel

it a bit risky

- 42 -

9. Public Response after introduction of CNG buses

Response , Rank Nos Speed, punctuality I 19

Comfortable(less noise and better seats) II 14 Less breakdown III 10

others IV 7 Total 50

Public Response after introduction of CNG buses

19

14

107

0

5

10

15

20

Speed, punctualityI

Comfortable(lessnoise and better

seats) II

Less breakdow n III others IV

Public Response

Interpretations

People traveling in CNG buses appreciate and majority say that

1. CNG buses are speedy and thus have become punctual

2. CNG buses create less noise and give comfort feeling

3. Technically they are sound and thus have les break downs

4. Other features are ,drivers seat gets less hot, gives a mega city look, no

diesel smell etc

On the other hand it is has not benefited financially; has reduced losses

minutely, cannot be repaired on highways as mechanic not easily available,

more maintenance and frequent complains from drivers.

- 43 -

10. Pre CNG and Post CNG RSPM levels in Ahmd

Year Level 2000 190 2001 190

2004 CNG 135 2005 CNG 125

RSPM levels in Ahmd

190 190

135 125

0

50

100

150

200

2000 2001 2004 CNG 2005 CNG

RSPM LEVELS

Interpretations

1. Pre CNG scenario implies that situation was very critical as RSPM m levels

were as high as 190

2. Introduction of CNG has reduced RSPM levels by 34.2 % i.e. from 190 to

125 in 1 year

3. Even though LPG and CNG are both been introduced in Ahmd Majority of

the effect is due to CNG from graph no 3 and 4

- 44 -

11. Catering level of AMTS

Year % Need Catered Pre CNG 7

Post CNG 2004-05 14 Post CNG 2005-06 18

% Need catered by AMTS

7

14

18

02468

101214161820

Pre CNG Post CNG2004-05

Post CNG2005-06

SCENARIO

% N

EE

D C

AT

ER

ED

Need Catered

Interpretations

1. As e result of chart 9 the catering level of AMTS has significantly

increased fro 7% to 14% (ideally for developed nations it is 45% - 50%)

2. There has been increase of 100% in the catering level

3. People have shown faith in AMTS

4. Chances of increase I nthe level is high once more of new fleet is

introduced

- 45 -

12. Price comparison of various kits

Type CNG kit LPG kit 3 Wheeler 20-23 k 12-15 k 4 Wheeler 38-42 k 15-20 k

Price comparision of CNG and LPG kits

22

13

40

17

05

1015202530354045

CNG LPG

Types of kits

Rs in

'000

3 Wheel

4 Wheel

Interpretations

1. CNG kits are the costliest

2. 4 wheeler kits are the most expensive (40 k) this might be one of the reason

for less of private vehicles getting converted to CNG

3. 3 wheeler kits are the cheapest

- 46 -

6. Findings

- 47 -

6. Findings

1. There lies scope for private players to invest in this growing business as

Govt is giving a helping hand to it.

2. Adani play a major role in CNG distribution in Ahmedabad

3. Ahmedabad has 35 CNG station and 10 LPG stations which shows that

Ahmedabad is not stressing on LPG whereas, which signifies that there

must be some constraint for Ahmedabad in terms of using LPG being used

as Auto fuel and it has favorable conditions for CNG setup

4. Pune emphasizing on LPG and planning to install more 10 LPG station in

next 8 months and has not come up with any CNG station yet which shows

that there are constraints for Pune to start with CNG distribution and has

favorable condition for LPG

5. Govt transport is having a slow progress in Ahmedabad as only 200

GSRTC buses are under CNG .This is due to less or no gas stations

available in other cities.

6. AMTS has done comparatively good work in adopting CNG and has helped

in reducing pollution levels to great extent.

7. Emphasis is not given to private vehicle conversion to CNG in Ahmedabad.

8. Auto drivers and private vehicle owners are still hesitant to go with CNG

and LPG due to various reasons as mentioned in earlier section.

9. Citizens of Ahmd are pretty satisfied the way AMTS is functioning

currently.

- 48 -

10. The prices CNG kits are much higher than LPG kit which is one barrier to

CNG conversion

11. Cost of setting up a CNG station is much higher than LPG station.

7. Limitations

- 49 -

7. Limitations

1. It took long hours to meet and get information from officials.

2. Officials were hesitant to provide data or information

3. As the project has a wide scope, some of the areas had to be neglected

like

4. Technical details, in depth judicial information, various aspects of

pollution etc.

5. As only 1 year has passed in the implementation of the system, no clear

idea was given by the auto respondents as all had bought a new autos so

the fault was not visible instantly ,it will take time of another year for

the real picture to come out

6. As the project duration was in the midst of rains, some time and

schedule constraints were there.

7. As there was email communication between me and some of the

officials , it took some time to collect information and compile it for the

documentation

- 50 -

8. Conclusion

- 51 -

8. Conclusion

Adopting alternate fuel is nothing but A No Escape Route for the developed

and developing nations. The sooner you welcome it, the better results you

achieve.

The stage is set for expanding the network to other cities. The success of CNG

Expansion Program would depend on many factors. The key factors being the

economy of CNG vis-à-vis other conventional fuels, adherence to safety

guidelines and the Government Support.

Auto LPG is also launched on a large scale in the country. At the end of the

day, it will be the quality of the fuel and economics which would be important

parameters for the commercial success of auto fuel. The emphasis would be on

fuels with lowest emissions. However, CNG is here for the time being till a

better fuel is discovered offering better economics to the users.

- 52 -

9. Recommendations

- 53 -

9. Recommendations

1. Govt should encourage more private companies so that the combined efforts

would bring early results

2. Policy reforms are needed to support growth opportunities for private

investment

3. Both the fuels should be encouraged so as to have balanced demand and supply

scenario and it does not happen that one fuel is pressurized under demand and

creates rise in its prices

4. Standalone LPG should be allowed just like standalone CNG stations

5. Proper awareness should be promoted amongst the citizens so as to clear their

misconception regarding use of these fuels.

6. Strict action should be taken on sale in branded and cheap kit providers

7. Citizens using gas cylinders in their vehicles illegally should be penalized

severely

8. Openings of more gas station should be encouraged by Govt by loosening the

legalities involved into it.

9. The road capacity needs to be widened so that the new fleet does not make

congestion on the roads.

10. To encourage people, prices of these fuels should not go up drastically.

11. New system should not add financial burden on the general public, so a well

planned strategy should be made for the smooth and long running of the

system.

12. Review meetings should be held periodically to discus the effectiveness of the

system and suggestion to make the system more efficient .

13. Study of geographical spread of CNG vehicles movement is a must analyze the

peak demand at individual CNG stations

14. Involvement of local government/transport authorities

15. Genuine cylinder kits and spare parts be used for CNG vehicles

- 54 -

16. Development of CNG infrastructure needs to be in line with growth of CNG

vehicles avoid accidents

17. Suitable codes/standards are to be in placed for CNG kit fitment, testing etc.

10. Abbreviations

- 55 -

10. Abbreviations

Ahmd AHMEDABAD

CNG

COMPRESSED NATURAL GAS

LNG

LIQUIFIED NATURAL GAS

LPG

LIQUIFIED PETROLEUM GAS

ARAI

AUTOMOTIVE RESEARCH AUTHORITY OF INDIA

PMC

PUNE MINCIPAL CORPORATION

PMT

PUNE MINCIPAL TRANSPORT

RTO

ROAD AND TRANSPORT OFFICE

BPCL

BHATRAT PETROLEUM CORPORATION LTD

IOC

INDIAN OIL CORPORATION

HPCL

HINDUSTAN PETROLEUM CORPORATION LTD

GSPC

GUJARAT STATE PETROLEUM CORPORATION

GSRTC

GUJARAT STATE ROAD AND TRANSPORT CORPORATION

GPCB

GUJARAT POLLUTION CONTROL BOARD

AMC

AHMEDABAD MUNCIPAL CORPORATION

AMT

AHMEDABAD MUNCIPAL TRANSPORT

- 56 -

11. Bibliography

- 57 -

11. Bibliography

1. Research methodology C.R Kothari

2. ARAI Library

3. Printed record from GPCB ,GSPC ,HPCL ,GSRTC ,PUC outlet

4. Star news

5. www.Google.com

6. www.altfuels.com

- 58 -

12. Annexure

- 59 -

12. Annexure

Questionnaire For Autos and Private Vehicle Owners

1. Place:-___________________________

2. Name and Type of vehicle :- Mention type in the box

CNG LPG 3 Wheeler 4 Wheeler

3. Vehicle Age:- Tick the option applicable A. 6 months - 1 year B. 1 year 1.5 years C. more than 1.5 years

4. Problems:- Mention first 5 basic problems

a. _______________________________

b. _______________________________

c. _______________________________

d. _______________________________

e. _______________________________

5. Benefits:- Mention first 5 significant benefits

a. _______________________________

b. _______________________________

c. _______________________________

d. _______________________________

e. _______________________________

- 60 -

6. Suggestions :- Technical, Administrative, Safety, Economical etc

_____________________________________________________

Questionnaire For Public response on Public Transport

1. Do you travel by public transport: - Yes / no

If Yes then, how frequent

a. Daily b. Most of the times c. sometimes

Current experience: - Good / Bad ,mention 4 features

a. _______________________

b. _______________________

c. _______________________

d. _______________________

Previous experience: - Good / Bad ,mention 4 features

. a. _______________________

b. _______________________

c. _______________________

d. _______________________

2. Suggestions( if any ): -_____________________________________

- 61 -

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