Compressed Natural Gas (CNG) by po2378


									                                       SKE Realty
                                       building relationship on ground realty

                       TWO GAS STATIONS FOR FRANCHISEE
                              Gurgaon, Haryana, India

Product: 2 CNG (Compressed Natural Gas) Stations

Location: Sector-24 & 51, Gurgaon

Addresses and locations of CNG stations
1. Sector 29
2. Sector 44
3. Sector 53
4. Sector 15-I
5. Sector 14
6. Sector 22
7. Sector 18
8. Sector 31-32

Each CNG Station has-
1) 1500 sqmt land leased to the company by Haryana Govt.
2) 2 Gas dispencer with 4 nozals
3) 45 sqmt/500 sqft area can be used as commercial purpose like ATM space and Food Outlet
4) Training & Support

Future Plans for next 3 Years: 30-35 CNG Stations

Market Potential
Gurgaon is another city under the Haryana state government, which would be covered under
the IGL’s CNG expansion programme in the NCR towns. As of March 2004 it has around
44,453 vehicles, out of which around 1,758 are autos and around 4,890 taxis. Like all the NCR
towns, which are going to be covered under the programme, it also has just 506 buses.

IGL has estimated the number of vehicles, which would be covered, and the resultant demand
for CNG in Gurgaon. It is estimated that at the end of fifth year, that is second phase of the
programme, the number of vehicles that would be converted to CNG would be around 14,807,
with an estimated CNG demand of 1,43,516 SCMD. Taxis and cars would be main driver of
CNG market in this region.

Growth: 6000 new vehicles registered per day in Haryana

Product: CNG - The Fuel of the Future
CNG has been widely used in vehicles since the 1930s, in countries that include Argentina,
Russia and Italy. It is gaining increasing acceptance, particularly for city transport vehicles such
as taxis, buses and delivery trucks due to its relative superiority over other conventional fuels.

CNG is compressed natural gas. It mainly consists of methane (91.9%), with other constituents
like ethane, propane and butane. It is an intrinsically pure fuel that emits negligible quantities of
pollutants when burnt. Natural gas is compressed to a pressure of 200-250 kg/cm (to be stored
in a cylinder) and hence the name Compressed Natural Gas. It is colorless, odourless, non-
toxic, non-carcinogenic and lighter than air. CNG is not the same as LPG (Liquefied Petroleum
Gas) or LNG (Liquefied Natural Gas). Compressed Natural Gas is a low smoke, low pollution,
safe and cheaper (than petrol) fuel. It has been successfully and widely utilized by the
transportation sector in developed countries worldwide.

Nature of Proposal: Franchisee/Lease of CNG Station

Lease Period: Min 3 years (3 years+ 3 years+ 3 years …)


One time deposit: INR 55,000,000 (Rs.5.5 crore)-Interest Free
Lock in Period: 3 years
Refundable amount: INR 50,000,000 (Rs.5 crore) if you don’t want to continue

Commission Slab for sale of CNG per day
- Upto 5000 kgs: Rs.3 per kg
- 5000 to 10000 kgs: Rs.2.5 per kg
- Above 10000 kgs: Rs.2 per kg

Revenue Projection: Rs.58 lacs to 95 lacs per annum
1) Sale of CNG
On average 5000 Kgs sale:
- Rs.15000 per day
- Rs.4.5 lacs per month
- Rs. 54 lacs per annum

On average 10000 Kgs sale:
- Rs.25000 per day
- Rs.7.5 lacs per month
- Rs. 90 lacs per annum

2) Rental Income
- Monthly rental from ATM: Rs.15000 per month (Min) or 1.8 lacs per annum
- Monthly rental from Food Outlet: Rs.20000 per month (Min) or Rs.2.4 lacs per annum
- Total Monthly Rental Income: Rs.4.2 lacs

Return on Investment: 10.5% to 17%

Terms & Condition:
- One can book as much as stations.
- Lock in period is 3 years and after that you will come out with 3 months prior notice.

Deadline: 30th April 2008 for 2 CNG Stations only but you can book other coming stations.

Cost: Rs.5.5 crore+ 2% of brokerage + 12.38% Service Tax

Note: Direct party please contact within 10 days (17.04.2008)

Name: Saurabh Singh
Cell: +91-11-9891616620

          105, First Floor, M-92/1, Baldev Singh, Complex, Munirka, New Delhi-110067, India
                       Cell: +91-11-9891616620, E-mail:

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