Gujarat Gas_general_guidelines_fdodo_scheme
Gujarat Gas_general_guidelines_fdodo_scheme
STATIONS UNDER
for
November, 2023
For the Letter of Intent (“LOI”) received for establishing and running CNG Station(s) within the
Authorized Area of Gujarat Gas Limited (“GGL”), these guidelines will be applicable, mutatis
mutandis, to GGL and the Applicant with respect to the relevant Authorized Areas in the state of
Gujarat.
For the Letter of Intent (“LOI”) received for establishing and running CNG Station(s) within the
Authorized Area of Sabarmati Gas Limited (“SGL”), these guidelines will be applicable, mutatis
mutandis, to SGL and the Applicant with respect to the relevant Authorized Area in the state of
Gujarat.
As the case may be, GGL and SGL may also be referred to, individually, as the Authorized Entity as
defined under the PNGRB Act, 2007 and the extant Regulations.
Authorized Area means the specified geographical area for a city or local natural gas distribution
network (hereinafter referred to as CGD network) authorized under the PNGRB (Authorizing
Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks)
Regulations, 2008 for laying, building, operating or expanding the CGD network and with respect
to which the Authorized Entity is granted marketing and infrastructure exclusivity. Authorized
Area is also referred to as the Geographical Area (in short “GA”)
City or Local Natural Gas Distribution Network means an interconnected network of gas pipelines
and the associated equipment used for transporting natural gas from a bulk supply high pressure
transmission main to the medium pressure distribution grid and subsequently to the service
pipes supplying natural gas to domestic, industrial or commercial premises and CNG stations
situated in a specified geographical area. CNG Station means filling station where one or more
dispensing units are provided for sale of compressed natural gas
Gujarat Gas Limited (formerly known as GSPC Distribution Networks Limited), is India's largest
City Gas Distribution player with its presence spread across 44 Districts in the State of Gujarat,
Punjab, Haryana, Madhya Pradesh, Rajasthan and Union Territory of Dadra & Nagar Haveli
making GGL a PAN India Company.
The company has India's largest customer base in Domestic, Commercial and Industrial segments.
The company has more than 37,000 (Thirty Seven Thousand) kms of gas pipeline network. It has
more than 800 CNG stations and distributes approximately 9 mmscmd of natural gas to more
than 20.25 lakh households, approximately 3.5 lakh CNG vehicles (serving per day) and to over
4,300 (Four Thousand and Three Hundred) industrial customers.
Sabarmati Gas Limited (SGL), a joint venture company of Bharat Petroleum Corporation Limited
(BPCL) and Gujarat State Petroleum Corporation (GSPC), has been conceived to retail natural gas
by implementing gas distribution networks in Gandhinagar, Mehsana, Patan, Sabarkantha and
Aravalli districts in Northern Gujarat.
Presently, number of domestic customers are more than 2,00,000 (2 lakhs) spread across 17
Talukas. SGL has also connected more than 365 villages in 5 districts. More than 1,000 Industrial
and Commercial customers. SGL operates 161 CNG Stations.
3. CNG Overview
Air pollution in India is quite a serious issue with the major sources being fuel, wood, and biomass
burning, fuel adulteration, vehicle emission and traffic congestion. One way of tackling the air
pollution is to reduce the dependence on conventional fossil fuels like diesel and use cleaner fuels
like Compressed Natural Gas (CNG). CNG can be used in place of gasoline (petrol) and Diesel. CNG
combustion produces fewer undesirable emissions than Diesel. During combustion, natural gas
emits less carbon dioxide and no PM and Smoke as compared to diesel.
Government of India (GoI) has set a target to increase the consumption of Natural Gas in Indian
Energy basket from 6% to 15% by 2030.
With an aim to increase the share of natural gas in country’s energy basket, GoI has awarded CGD
licenses that covers 98% of India’s population and 88 % of area for development of CGD network.
India stands committed to reduce the emissions Intensity of its GDP by 45% by 2030 from 2005
level. India’s per capita carbon emissions have been hailed as significantly growing with concerns
over climatic change.
Further, to ensure price stability for priority sectors viz CNG and PNG (Domestic), GoI has revised
the Administered Price Mechanism (APM) in April 2023 that has resulted in a ~10% drop in CNG
prices. The increased competitiveness to petrol and diesel shall make CNG a preferred fuel for
automotive sector. CNG Sales is expected grow at 3%-5% CAGR at the country level. Authorized
Entity have been growing at around ~ avg. 10%.
To cater to growing volumes, infrastructure needs to be expanded at a rapid pace and a new FULL
DODO model is being implemented across the geographical areas of the Authorised Entity.
Authorized Entities are inviting proposals from prospective Applicants willing to set up and
operate new CNG stations (Online and Daughter Booster CNG stations) under this new Model.
This document contains relevant information for the Applicants willing to set up CNG station. The
interested Applicants are requested to apply vide respective advertisement published in local
newspaper for areas as per advertisement.
The interested Applicants should go through the guidelines carefully for filling up their
application form. Type of Stations covered under the Full DODO model
Online Station:
Online stations are connected with the Natural Gas Pipeline and have compression facility. The
compressed natural gas “CNG” is dispensed to vehicles locally through CNG dispensers at a
pressure of ~ 200 barg.
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Authorized Entity shall invite applications from any Citizen of India, Partnership Firm or
Company registered in India as per prevailing applicable laws for setting up Standalone Online
or Daughter Booster Stations (RO) vide advertisement in leading English and relevant
vernacular dailies under ‘Full Dealer Owned and Dealer Operated Model (FDODO/Full DODO)’
(Procurement, Installation, Commissioning, Transportation, Operation & Maintenance and
Dispensing model) within the Authorized Entity’s Geographical Areas (‘GAs’) in the state of
Gujarat.
This document gives details of the Guidelines for Setting up CNG Station under Full DODO Model.
1. Applicant Shall Offer Land Parcel for Setting up CNG RO as per details mentioned in
Annexure-A “General Details of the Land”.
2. Details of the Existing CNG Stations including Mother Facility and existing and future Gas
Network are made available at the Authorized Entity’s Website under the appropriate
Tab/Section (Gujaratgas and Sabarmatigas).
3. Scope of activities between Authorized Entity and the "Applicant/Dealer” will be as per
details mentioned in Annexure-B “Scope Matrix”.
4. Eligibility Criteria of the Applicants who can apply for this proposal are as per details
mentioned in Annexure - C “Who Can Apply?”
5. Interested party can apply for FULL DODO by filling up the Online Application Form
available on Authorized Entity’s website under appropriate Tab/Section (Gujaratgas and
Sabarmatigas). Details for filling up the form are mentioned in Annexure-D “Application
Guidelines”.
6. To assist Applicants, an Online Financial viability calculator to check indicative feasibility
and estimated costs (Capital Expenditure and Operational Expenditure) has been made
available in the Authorized Entity’s website under appropriate Tab/Section (Gujaratgas and
Sabarmatigas). Viability of the CNG station is to be assessed by Applicant. The Online
Financial Viability Calculator values are indicative and for reference purpose only.
Applicant shall do its own due diligence and analysis to reach any financial decision.
Authorized Entity shall not be held responsible for decision made by the Applicant based
on these indicative values.
7. The entire responsibility towards operations, safety, delivery (towards weights and
measurements), requirements of statutory authorities including PNGRB Compliances,
permissions, approvals and other business-related requirements will be in the scope of the
Applicant and an indemnity bond shall be submitted by the Applicant in this regard along
with the Dealership Agreement.
8. The applications received shall be scrutinized and evaluated as per Authorized Entity’s
internal procedure. Only valid applications as per published guidelines shall be considered
for further processing and all invalid application shall be summarily rejected. Applicants
shall be duly informed about the rejection of their applications.
9.1 Upon satisfying itself regarding the fulfilment of the requisite terms and conditions,
pursuant to internal due diligence, Letter of Intent (LOI) shall be issued to eligible
Applicants. Internal due diligence shall be confidential and the Applicant cannot
demand disclosure of the same.
9.2 Any decision, including rejection of the Application, by the Authorized Entity pursuant
to the Due Diligence shall be final and binding upon the Applicant, who shall not object
to and accept the decision without any protest.
9.3 Authorized Entity reserves the right to select or reject any number of sites and/or
offer more than one Dealership at the same location/road, any site/award any
Dealership at any of the advertised location/road.
9.4 The Applicant agrees and consents that the selection and evaluation of the proposed
site for CNG is completely at the sole discretion of the Authorized Entity and
submission of the application does not create any right, interest or equity of any
manner to be considered or be selected.
9.5 Indicative Selection Criteria is mentioned under Annexure-E “Selection Criteria”.
The Applicant is expected to comply with all the terms and conditions and achieve the
milestones as given below for start of CNG sales.
**Furnishing of the Bank Guarantee and Clear Title Search Report shall be condition precedent for
execution of the Dealership Agreement and failure by the Applicant/LOI Holder shall be an event of default
11.1 The tenure of dealership will be for an initial period of 15 years including lock-in
period of 10 years with effect from commencement of CNG sale. During lock-in period,
neither party can terminate the Dealership Agreement except as may be specifically
mentioned in this document or Dealership Agreement.
12.1 Dealership Security Deposit: Each successful Applicant would have to submit an
unconditional and irrevocable Bank Guarantee (BG) of Rs. 10,00,000/. (Rupees Ten
Lakhs Only) (validity of 2 years and 180 days from the date of LOI acceptance)
12.2 Interest-Free Payment Security Deposit: Each successful Applicant shall pay
Interest Free Payment Security Deposit at the time of signing of Agreement
12.3 Advance Payment: Offtake of CNG will be strictly on the basis of Advance Payment
for the volume intended to be off-taken by the Dealer for further sale from CNG
Station. Detailed terms and condition of payment shall be as per the Dealership
Agreement.
Dealer Shall be paid Service Charge / Profit Margin or combination thereof as mentioned
below:
Service Charge /
S/N Type Slab Profit Margin
(Rs/kg)
Slab-1 Upto 4,000 kg/day 8.05
13.1 Online Station Slab-2 (incremental volume)
4.18
Beyond 4,000 kg/day
Slab-1 Upto 2,500 kg/day 10.50
Daughter
13.2 Slab-2 (incremental volume)
Booster Station 6.95
Beyond 2,500 kg/day
*GST extra as applicable
14. Penalty:
14.1 Penalty of Rs 2,00,000 (Rupees Two Lakhs Only) for every 6 months of delay to be
prorated as per actual delay period after 1 year of agreed development period from
the date of agreement in the event of failure by the Applicant/Dealer to timely achieve
the stipulated original milestones. As a matter of abundant caution and in order to
avoid any confusion on the aspect of prorated deduction of penalty, it is clarified by
way of the following illustration - If the delay is of 4 (four) months during the relevant
6 (six) months period then a deduction equivalent for the delay of 4 (four) months
shall be done .
14.2 Without prejudice to the imposition penalty as mentioned above, in case the Dealer
fails to commission the CNG station within 24 months from the date of agreement, the
Authorized Entity will review the progress and reserves the right to fix the revised
milestones for the Dealer along with extension of Bank Guarantee validity. In case,
Dealer is not able to achieve the progress as per the revised milestones, the
Authorized Entity reserves the right to forfeit the balance Dealership Security Deposit
and cancel the Dealership at its sole discretion without any further notice.
Authorized Entity shall reserve rights reject the application, terminate the allotment of LOI
and/or the Dealership agreement on account of following–
Authorized Entity reserves its right to amend, modify, delete or add any of
the above terms and conditions at their sole discretion.
Annexure:
A. General Details of the Land
B. Scope Matrix
C. Who Can Apply?
D. Application Guidelines
E. Selection Criteria
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1.1 Location of the Land shall be inside Authorized Entity’s GA’s. Details of the Authorized
Entity’s GA will be shared in the website under appropriate Tab/Section (Gujaratgas and
Sabarmatigas).
1.2 Preferable rectangular area in the range of 1000-4000sqm.The Minimum frontage and
depth of the plot should be as mentioned below:
1.3 The plot size indicated above shall be measured after leaving applicable ROW as per norms
of NHAI/PWD/CPWD/State Highway Dept. /Local Authorities etc.
The offered land should be free from encumbrances, charges (mortgages), lien, third party
rights/interests and should not be subject matter of dispute or court case. In case the
Applicant is having leasehold interest in the subject land there must be a registered lease
deed with an express agreement with the original owner to further sub lease the land and
the lease deed shall always be valid for a minimum period equivalent to the term of the
Dealership Agreement, which shall be for 15 years. For the purpose of clarity, the validity
period of the Lease Deed shall be a minimum period of 15 years with effect from the
effective date of the Dealership Agreement. In case of ownership right of the Applicant, the
title should be absolute and there should be no restriction in establishing and operating the
CNG Station.
1.4 The Applicant should have legal access to land by way of ownership with clear title or
having a registered lease deed with an express agreement with the original owner to
further sub lease the land at the time of accepting of LOI. For leased land, the lease deed
shall have to be valid for a minimum period equivalent to the term of the Dealership
Agreement, which shall be for a period of 15 years. For the purpose of clarity, the validity
period of the Lease Deed shall be a minimum period of 15 years with effect from the
effective date of the Dealership Agreement.
1.5 In case of offered land, type is Agricultural then the same shall be converted to non-
agricultural purpose more particularly for the use of CNG station or other allied purposes
at expense and cost by land owner or lease holder as the case may be. The land must be
suitable for development for CNG station and other commercial activities and impact
charges, if any, need to be paid to the local development authorities right now or in future
also, the same shall be paid by the land owner/Applicant as the case may be and the same
shall never be recoverable from the Authorized Entity.
Deponent
VERIFICATION:
Designation
Location
Certified by:
Name & Details __
(Signature and Seal of Signature Magistrate/Judge/Notary Public)
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Note: (i) Authorized Entity shall consider proposed site for Online Authorized
1.1
Station in case the required length of steel pipeline (from the main Entity
pipeline network till the proposed retail outlet site) is up to 2 KM and
laying of such pipeline is found feasible. Else, proposed site may be
considered for DBS station.
Arrangement of Land & all the land related permissions such as Urban
Land ceiling, CLU, applicable clearances from tax departments, No
1.2 Dealer
Objection Certificate from Owner / Co- Owners of Land for setting up
CNG Station as per terms of dealership.
All Civil/Mechanical/Electrical Works for setting up the CNG Station as
per design and specifications given by Authorized Entity / applicable
1.3 Dealer
PESO / PNGRB / OISD guidelines and standards as may be prevailing
from time to time.
Design & Layout of CNG Station Authorized
1.4
Entity
Design and specifications of CNG Equipment Vendor List (for CNG Authorized
1.5
Equipment) Entity
Compliance of all Statutory Permissions related to Construction of CNG
1.6 station, CNG Equipment viz. PESO license, HAZOP & QRA of CNG Dealer
Station.
Procurement (or Lease) & Installation of all required CNG Equipment
such as Compressor, Cascade, CNG Dispensers, SS Tubing etc. and all
associated facilities (including electrical items) to run CNG equipment
1.7 Dealer
for CNG dispensation as per design and specifications given by
Authorized Entity and applicable PESO/PNGRB/OISD guidelines and
standards.
Arrangement of required Electrical System e.g., taking Electrical
Connection, Electrical Cabling & Earthing, UPS, Power Backup system,
1.8 Dealer
capacitor bank if required, Arrangement of Transformers, design of
electrical panel, installation of Electric Meters, Lighting Poles etc.
Procurement and Installation of Gas measurement equipment/Meters Authorized
1.9
as decided by Authorized entity from time to time Entity
Stamping of Dispensers by W&M Dept., Consent from Central Electrical
Technical Dept., Factory License, Labour License, Hydro testing of
Cascades as per Gas Cylinder Rules. The approval from any statutory
authority (ies) required as per statutory rules and regulations of
Central / State Government, PESO, etc. shall be the Dealer’s
1.10 Dealer
responsibility unless otherwise specified under any prevailing laws.
The application on behalf of Authorized Entity, as required under any
prevailing laws, for submission to relevant authorities along with
copies of required certificates complete in all respects shall be
prepared and submitted by the Dealer well ahead of time so that the
Note: In case the compressor is gas-based, internal consumption of the compressor will be
measured through jointly calibrated mass flow meter and fortnightly reconciliation of the internal
fuel consumption shall be carried out. The differential consumption will be separately invoiced
fortnightly at applicable Authorized Entity’s Piped Natural Gas Industrial rates, from time to time.
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1.2 For Partnership Firms: In case, the application is submitted in partnership mode, the
Partnership Firm should be duly registered under Indian Partnership Act, prior to the
submission of application. All partners of the firm should individually fulfil the eligibility
criteria as specified as above. Firm should submit a single application form in its own name
only. Issuance of LOI and subsequent execution of dealership agreement if found successful,
shall be with the same partnership firm only (without any change of composition).
The entities registered in India under Societies Registration Act 1860 are also
eligible to apply, provided the date of registration / incorporation of the firm / entity
is at least 3 years prior to the date of application.
Issuance of LOI and subsequent execution of dealership agreement shall be with the
same registered Cooperative / Consumer society only. Copy of certificate of
registration, Authority letter and resolution specifying name of the authorized person
for making application is required along with application.
The entity should be registered in India, the date of registration / incorporation of the
firm / entity should be at least 3 years prior to the date of application. Issuance of LOI
and subsequent execution of dealership agreement shall be with the same Organized
Bodies only, without change of any composition post submission of application. Copy
of certificate of registration, Authority letter and resolution specifying name of the
authorized person for making application is required along with application.
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1.1 Applicant have to apply online in the prescribed format available on the Authorized Entity’s
website under appropriate Tab/Section (Gujaratgas and Sabarmatigas).
1.2 Each Applicant will have secured login to view the status of their application till
acceptance/rejection. Email and /or SMS on their registered Email id and Mobile Number
(mentioned in the application form) will also be shared with the Applicants informing their
status of application. Applicants should regularly check the status to keep themselves
updated.
1.3 Application Fee: The non-interest bearing application fee of Rs. 25,000/- including GST
(Rupees Twenty-Five Thousand Only) through Demand Draft (DD) (Refundable without
any interest as per terms and conditions mentioned in this document) is required to be
submitted along with the duly signed application form print out downloaded from website
as per following details:
Note: Applicant is required to submit separate Demand Draft of Rs. 25,000 for each plot/site offered
in application.
1.4 Applicant can select its land location from the map facility provided in the Online
Application Form.
1.5 Following Documents are required to be uploaded as part of Application form Submission.
1.5.1 PAN (Mandatory for Individual, Partnership and Entity)
1.5.2 Aadhaar (Mandatory for Individual Applicant)
1.5.3 GST (Mandatory for Entity Applicant)
1.5.4 TAN
1.5.5 Certificate of Incorporation (in case of Company)
1.5.6 Registered Deed of Partnership (In case of Partnership Firm)
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1.1 Land Ownership - The offered land should be free from encumbrances, charges
(mortgages), lien, third party rights/interests and should not be subject matter of any
dispute or court case. In case the Applicant is having leasehold interest in the subject land
there must be a registered lease deed with an express agreement with the original owner
to further sub lease the land and the lease deed shall be valid for a minimum period
equivalent and parallel to the term of the Dealership Agreement, which shall be for 15 years.
For the purpose of clarity, the validity period of the Lease Deed shall be a minimum period
of 15 years with effect from the effective date of the Dealership Agreement. Applicant shall
ensure that the Lease Deed shall not be terminated prior to expiry of the Dealership
Agreement. In case of ownership right of the Applicant, the title should be absolute and
there should be no restriction in establishing and operating the CNG Station.
1.2 Size of the Land for CNG Station as stated in “General Details of the Land”
1.3 Stipulated Distance of nearby school/ hospital / Residential Society from the proposed Land
1.4 Shortest Motorable Road Distance prescribed (to be travelled by the LCV) of the proposed
DBS. Recommended distance from the Mother station to the DBS shall be within
50Kms.However the decision of the Authorized Entity shall be final and the Applicant shall
not question or challenge the validity of such decision taken by Authorized Entity
1.5 Location from the nearest Mother Station
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