Warm Greetings from Bhubaneswar, Orissa.
Now Biogas can be bottled in cylinder like LPG, which is something greener than compressed natural gas (CNG)
India may use its vast organic wastes to produce compressed biogas (CBG), which will supplement CNG. While technology to enrichment and compress biogas has already been devised, it will not be too long before our cars start running on CBG. Biogas consists of 60% methane and 40% carbon dioxide. This biogas can be purified (upto 96% of Methane) to match CNG standards.
It is our pleasure to inform you that for this we offer turnkey contract services to set up the plant and preparing Detailed Project Report (DPR) by highly qualified and experienced consultants. The data in the report are reliable and up-to-date collected from suppliers and Manufacturers.
The Content of Detailed Project Report (DPR)
• To include status of technology available for implementing the project.
• To assess technological and economical feasibility.
• Based on the outline specifications, procure offers for supply of major equipments in the project from competent suppliers.
• To confirm the system specifications of the civil, electrical and mechanical parts along with auxiliaries, and civil works.
• To confirm the requirements of water, utility consumptions, consumables, maintenance and other input costs of the plant.
• To confirm the manpower requirement (qualitative & quantitative) for the proposed plant and also prepare the organisation chart and estimate their annual costs.
• To prepare the bar chart for project implementation based on the delivery schedules of major equipments involved and their logical interconnections.
• To confirm the preliminary and pre-operative expenses including the cost of finance during the implementation period, worked out based on the financing pattern, project formulation, execution / engineering services, start up expenses, mortgage / insurance expenses and all other sundry expenses.
• To identify preventive and routine maintenance requirements.
• To identify total cash generation from the project for a period of 5-7 years based on production.
• To identify the total operating costs including water and consumables, manpower, maintenance, etc. for the same period.
• To evaluate the economic viability of the proposed project based on the financial projections of profitability, cash flow, balance sheet, return on investment and sensitivity analysis.
• To evaluate socio-economic benefit for the proposed project.
• To assess for environmental impact.
• To prepare detailed project report based on above, discussed the draft with the party and submit final DPR.
The Content of Bankable Project Report
BEGINNING: Project Introduction, Brief history of the product, Properties, Specifications & Requirements, Uses & Applications.
MARKET SURVEY: Present Market position, Expected Future Demand, Names and Addresses of Existing units (Present Manufactures).
PLANT & MACHINERY: List of Plant & Machineries, Miscellaneous items and Accessories, Instructions, Laboratory Equipments and Accessories, Plant Location, Electrification, Electric Load and Water, Maintenance, Suppliers/ Manufacturers of Plant and Machineries.
RAW MATERIAL: List of Raw Materials, Properties of Raw Materials, Availability of Raw Materials, Required quality of Raw Materials, Cost/Rates of Raw materials.
PERSONAL REQUIREMENTS: Requirement of staff & Labor, Personnel Management, skilled & unskilled labor.
LAND & BUILDING: Requirement of Land Area, Rates of the land, built up Area, Construction Schedule, and Plant layout.
FINANCIAL ASPECTS: Cost of Raw material, Cost of Land & Building, Cost of Plant & Machineries, Fixed Capital Investment, Working Capital, Project Cost, Capital Formation, Cost of Production, Profitability Analysis, Break Even Point, Cash Flow statement for 5-7 years, Projected Balance Sheet, Conclusion.
Frequently Asked Questions (FAQ) on CBG
Q. What is the cost of bottling?
A. The cost of production of CBG is cheaper and it is to be about 50 percent less than a LPG cylinder. This would further reduce with increased demand.
Q. What is the capacity of the tank?
A. It depends on the capacity of the plant you choose. But the most economic size is 400 M3 for commercial purpose.
Q. What is the project cost?
A. It also depend on the capacity of the plant varies from Rs.25, 00,000/- to 50,00,000/ as per today’s technology available.
Q. What is the difference between CBG and Other Gas?
A. There is no difference between CBG and CNG, as after purification of methane content is better at about 97% in CBG. LPG is at a pressure of about 14 Bar as compared to CBG at 200 Bar. The same quantity of CBG can be filled as compared to CNG
CBG being cheaper source of energy and with ever-rising cost of petroleum fuels it is a hot selling fuel. CBG is more effective than not only petrol and diesel, but also CNG & LPG. According to an estimate, it can give fuel efficiency of 12-15 km per kg (for a Maruti van) and costs only around Rs. 15 per kg, whereas CNG costs around Rs. 24 per kg.
Q. What is the market risk?
A. There is no any market risk of this project as petrol and diesel prices go higher and higher. Also broadening the application of biogas has given a new cheaper, eco-friendly alternative and cost-effective compressed biogas (CBG).
Q. What is the Government Assistance?
A. As CBG being cheaper source of energy and with ever-rising cost of petroleum fuels it is a hot selling fuel and hence Ministry of Non Conventional Energy Source (MNES), Government of India giving subsidies which is varies from state to state. As MNES is concerned it is 30%. Regarding the Govt. subsidy and permission for commercial production and sale, you have to enquire from the NODAL Agency of MNES for your State.
Q. What is the Government Formalities?
A. There is no license for this plant, whereas as per Central Government “Guess Cylinders Rules” and “Explosive Act” permission is must. Such permission is for Manufacturing, Storage and for Sale.
Q. What is the role of “Krishna Engineers & Consultants” on this project?
A. We are offering our consultancy services for selection of the capacity of the plant according to raw materials, local conditions and the promoter’s resources. We can prepare Detailed Project Report (DPR) for obtaining Bank Loans, Subsidy and other formalities. We also render our services on Process Knowledge, trainings to your personnel at your place and after sales services up to 2 years from the commercial production. At last we are the turnkey contractor for this project from procurement of machineries to trial production.
Q. What are the charges for our services?
A. To prepare DPR it is Rs.1,00, 000/- plus 12.36 % service tax, Bankable Project Report is Rs.10,000/- plus 12.36% service tax and for turnkey project execution (Consultancy, Procurement of Machineries, Installation, Trial Production, Training to your Personnel and After-sale-services for 2 years) is Rs.2, 00,000/-.
However we have prepared a Brief Report on commercial production of Compressed Biogas Plant (CBG), which contains some information like economics, land & machineries, capacity of the plant, block capital, working capital, man power, utilities, profit analysis etc. It is also very useful for making decision on this plant along with its capacity and useful for preparation of DPR. The charge for this brief report is Rs.1000/-.
Q. How you will get our DPR/Bankable Project Report/ Brief Report?
A. This can be had through your email on payment in the shape of Demand Draft in favour of “Krishna Engineers & Consultants” payable at Bhubaneswar. You can also deposit the same in our ICICI current account no: 006105002038.
Sl. No. Items Amount
1 Cow dung 8000 Kg of Cow Dung per day
2 Biogas 400 M3 per day
3 Biogas based power generating set 10 KW
4 CBG in Cylinder 16 Cylinders of 6 Kg. of each per day
5 Manure (Biocompost) 2 Tons per day
COST OF PRODUCTION
Sl. No. Descriptions Amount in Rs.
1 Cost of cow dung for 2880 Tons @ Rs 500 14,40,000
2 Cost of Production for 5760 cylinders of 6kg capacity of CBG including packing, salary, consumables, stores, repair & maintenance & depreciation. 3,00,000
3 Sales Realization of 16 X 30 X 12 = 5760 cylinders
@ 150/-per Cylinder 8,64,000
4 Sales Realization of Bio compost 730 tons
@ 2500/- per ton 18,25,000
5 Profit per Annum 9,49,000
6 Cost of sales, interest, selling overheads,
administrative overheads, tax and dividend 3,49,000
7 Profit per Annum after all expenses 6,00,000
We invite comments and suggestions from professionals/researchers/entrepreneurs/ engineering students/indivisuals regarding above projects.
With Warm Regards.
Krishna Engineers & Consultants
4723, Laxmi Vihar, Sainik School