CHAPTER 1

INTRODUCTION
Borrower Profile:
S
Parameters Details
N
1. Name
Private Limited Company/ Partnership/ proprietorship/
2. Constitution
LLP
3. Line of Activity Manufacturing of Bio-CNG and Bio-Fertilizer
4. Existing Banker
5. PAN No of Company
6. GST IN
7. Unit Address
8. Office Address
Partner/ Director/
9. CIN Number Constitution Share Holding
party details

INTRODUCTION:

Background:
1. Project:
M/s XYZ has planned to set up Bio-CNG and Bio-Fertilizer Manufacturing unit with
production capacity of …………. Kg/Day and ………………. Kg/Day respectively.
The Unit is proposed to be established under Sustainable Alternative towards
Affordable Transport (SATAT) scheme launched by GoI.
The initiative was launched on 2nd Oct 2018 by Ministry of Petroleum and Natural
Gas & Skill Development and Entrepreneurship, with PSU Oil Marketing Companies
(OMCs) like Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd.,
Hindustan Petroleum Corporation Ltd., and GAIL Limited by inviting Expression of
Interest (EoI), from potential entrepreneurs to set up Compressed Bio-Gas (CBG)
production plants and make available CBG in the market for use in automotive
fuels.
The main objectives of SATAT scheme is to
 Utilise more than 62 million MT of waste generated every year in India.
 Reducing vehicular emissions and pollution from burning of Agricultural
residues /Organic wastes.
 Reduction in import of Natural gas and Crude oil.
 Buffer against Crude oil/ Gas price fluctuations.
2. Project Background:
M/s XYZ is a Company/firm/individual concern and the project is for establishment
of Bio–CNG and Bio-Fertilizer Manufacturing Unit with per day production capacity
of ............................ Kg CNG and ............................ Kg Bio Fertilizer.

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Proposed project is to be established in [address].

OMC (as applicable) has given Letter of Intent dated …………. to the M/s XYZ under
SATAT scheme for supply of CBG produced. OMC will purchase the produced CBG at
Rs. …………………. per Kg (as per award) of Bio-CNG supplied.
M/s XYZ has entered into tie-up agreement with (SERVICE PROVIDER)for setting up
of ……………. Cu. M Volume of CBG and Fertilizer Plant.
3. Proposed Project Rationale
MoPNG launched an initiative on 02 nd Oct 2018, under SATAT scheme with Oil
Marketing Companies (OMCs) inviting Expression of Interest (EOI) from potential
entrepreneurs to setup Compressed Biogas Plants.
OMC has floated EOI with Reference number …………… dated ………. to various
Entrepreneurs, Proprietors, Partnership firms, Companies, Cooperative societies
and Technology providers for supply of CBG under SATAT scheme.
Based on EOI floated, M/S XYZ has shown its interest & submitted its application
for supply of …………….. Kg/Day of CBG.
OMC has issued LOI via reference no. ………………………. to M/S XYZ dated ……….. to
establish Manufacturing unit of CBG plant at [address].

4. Company’s Background:
a) M/s XYZ established as a private limited company, with registered Office at (office
Address)
M/S XYZ is a SPV/partnership firm with Consortium of the following companies,
S N Parent Entities % of Share holding
1
2
3

Business of M/S XYZ shall be of

o To carry on the business in India and outside India as manufacturers,
producers, processors, job workers, traders, commission agents, dealers in
CNG, Bio-Gas, Power Gases, PNG, LNG, oils, minerals, Crude Oil, Bio-
Fertilisers, Chemical Fertilisers, Pesticides, Insecticides, Agro-waste, Domestic
Waste, Municipal Waste, Industrial Waste including the by-products &
derivatives of these products.
o To act as a consultant on turnkey basis and/or part thereof for development
projects connected with the dealing in alternate sources of energy, energy
efficiency, pollution control, resource recovery, waste minimisation, waste
avoidance, carbon dioxide, emissions abatement, all kind of fertilisers, fuel
switching mechanism and sustainable power and other related areas.
o To carry on the business of manufacturers, producers, importers, exporters,
buyers, sellers, dealers, stockists, suppliers, wholesalers, distributors,
retailers and jobbers of solid fuel briquettes, etc.
5. Gist of LOI OMC :

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LOI was issued by OMC via Ref No OMC /SATAT/01/02 to M/s XYZ dated ………… for
15 months from the date of execution.
Based on request from the Company, OMC has extended the tenure of LOI with
reference number for additional 12 Months from the date of expiry.
Company is responsible for planning, preparation, engineering and execution of
the CBG plant, including the storage of raw material, operation and maintenance
of the CBG plant, maintaining final product output quantity and quality, managing
the by-products and wastes from the CBG Plant as per existing Central/ State
Government norms and providing performance guarantee for the CBG Plant.
Company is responsible for setting up and commissioning of the CBG Plant and its
continuous operation including arranging the entire land and finance.
Company should ensure that the CBG delivered should be of automotive grade and
cooking grade compressed at desired Bar as required by OMC.
CBG shall meet IS 16087:2016 specifications of BIS or its recent version and /or any
other prevailing standards on CBG.
a. Delivered at Retail Outlets in Cascades: Price framing for CBG delivered at
OMC existing or new Retail outlets/ standalone selling point through Cascades
are fixed as,
Pumped in OMC Delivered at Retail
Particulars Unit Pipeline compressed Outlet in Cascades.
at 5 -30 Bar Compressed at 250 Bar
Basic Price of CBG meeting IS
(Rs /Kg) 41.00 46.00
16087: 2016 standard.
GST as per actual (presently 5%) (Rs /Kg) 2.05 2.30
Total supply price (incl. GST) (Rs /Kg) 43.05 48.30

b. Company to get all the required Licences/approvals/ permissions from the

statutory authorities which are mandatory/necessary for the operation and
transportation of CBG.
c. Before commencing of CBG Plant, a “Commercial Agreement” will be signed
between OMC and M/s XYZ for supply and Marketing of CBG. Validity of the
agreement is 10 years and will be further extended on mutual consent.
6. Managerial Background:
A. Promoters Background:

B. Turnkey supplier background:

C. Milestones of technology provider:

Rs In lakhs
FINANCIAL INDICATORS ABS ABS
  2019 2020
Capital
Reserves & Surplus
Intangible assets/accumulated losses
TNW
Long Term Loan from Banks/FIs
Total Capital Funds
Current Assets

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Current Liabilities
NWC
Non-Current Assets
Net Sales
Other Income
PBDIT
NPBT/(loss)
NPAT/(Loss)
Net Profit/Capital Employed (%)
Interest
Depreciation
Cash Accruals

D. Directors/partners of the M/S XYZ:

Rs in Crores
DIN Name Designation Date ofNet worth
Appointment

Remarks: Details of individual partners are annexed as Addendum III to this report.
E. Key Technical Persons Involved in the Project:

F. About OMC:

7. Bank Dealings of the Company:

As informed by CO, the Company is new to our bank and does not have any
Outstanding with us/ any other banks/FIs.

NAME CIBIL Particulars

M/s M/S XYZ No delinquency reported Company

Note:
 SA/Branch has to obtain the latest limit & liability position in the name of
Director/ Company if any and ensure satisfactory dealings.

8. Business Model of the Company:

A. Flow Chart depicting the Business Model of the CBG Unit

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Flow Chart depiciting the Business Model of the proposed unit:

Raw Material

Feed Preparation

Anaerobic Digestion (Digester)

Bio Gas
Digestate

Purification of BioGas
Dry fertilizer Liquid Fertilizer

Bottling of Bio Gas

Marketing

Pic: AIC official along with Chief Manager of the Branch and Manager of the Company.

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CHAPTER 2
INDUSTRY SCENARIO

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CHAPTER 3
TECHNICAL APPRAISAL
A. Location:
The unit is proposed at ………………………………………………..
Advantages of location:

Pic: Google map showing the project site.

B. UTILITIES:
1. Product Uses:

2. Capacity of the Unit:

3. Raw Material:

Availability of RM:
Raw Material % Utilization Source
Cow Dung
Poultry Waste
Fruits and Vegetables waste
Other Raw Materials

4. Power:
The total power requirement for the unit is around ……………… KVA. Cost is assumed
to be Rs ………… per unit of Grid Power and Rs ………….. per unit of Captive Power.
The unit has applied for a load of ……………..KvA at project site.
5. Water

6. Manpower
Rs in actual
Salary/
Particulars Nos.
Month
Bio Analyst
Plant Manager
Plant Engineer
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Assistant Engineer
Plant Operator
Raw Material handling
Fertilizer Handling
Dispatch Staff
Driver
Security & Peon
Total

7. Statutory Approval / No Objection Certificate

Registration/Licence/ Consent Status/Authority Remarks
PAN Number
GST Number
Udyam Registration Number
Approval from Petroleum & Explosives
Safety Organization (PESO)
Approval of Factory Plans by Town
Planner
Approval of Factory Plans under the
Factories Act from the office of
Directorate of Industrial Safety &
Health (erstwhile Factory Inspectorate)
Consent to Establish (CTE) from State
Pollution Control Board

DIC (District Industry Centre)

Fire Department
Remarks:
 The above-mentioned statutory permissions are only indicative. CO/Branch to
advise/follow-up with the Company for obtaining all required statutory
permissions.
8. Implementation schedule:
The project implementation schedule is as under;
Beginning of Proposed
Particulars
Implementation completion
Land acquisition
Land development
Construction of building & civil
works
Placement of order for machineries
Installation & Erection of machinery
Trail Run
DCCO

Particulars Period/Date
Zero date (Date of first disbursement)
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Implementation period
Date of Commencement of
Commercial operations (DCCO)
Repayment holiday
Repayment Period
Door to Door Tenor
9. Technical Guidance:

10. Transportation of CBG:

The Company has two options for supply of CBG, the Oil Marketing Company have
fixed price frame work based on the mode of supply.

11. Marketing:
CBG:

Bio Fertilizer:

Demand for Biogas:

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CHAPTER 4
FINANCIAL APPRAISAL

The present proposal is for establishment of CBG and Bio Fertilizer Manufacturing
unit at …………………………………..
Based on the financial viability of the project, the following are recommended.
1. Physical and financial outlay:
Rs in Crores
Loan Margin
Particulars Total
Civil Works

Plant & Machinery

Other Civil works

Vehicles
Preliminary & Pre-operative Expenses
Contingencies
IDC 2022
IDC 2023
Bank Guarantee
Working Capital margin
Total

2. Total Hard Cost Component:

A. Civil Construction:

B. Plant & Machineries:

3. Source of margin money:



4. Subsidy:

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As informed, Vide MNRE Circular No F. No.20/222/2016-17 dated 28 th Feb 2020

Central Financial Assistance (CFA) for CBG projects and the company will receive
MNRE’s financial assistance of Rs 7.00 Crores. However, it will be infused 6 months
after plant’s commercial date of operation. Subsidy received will be directly used
to repay the outstanding debt.
As per the tender, MoUD will provide financial assistance of Rs 3.00 Crores during
the period of commencing from construction of project till completion of the
project.
Note:
 Though the company is eligible for Subsidy, we have not considered the same in
our appraisal. If the same is considered the financials will increase further.
 CO/RO/Branch to ensure to take all the necessary steps in order to claim
assistance/subsidy from concerned department.

5. Repayment schedule:


6. SECURITY
The subject Company has offered the following securities for the proposed credit
facilities;
(Rs in Crore)
SN Particulars Value
A Prime Security
1.
Value addition by civil constructions
2.
Hypothecation of Plant and Machineries
3.
Hypothecation of Vehicles Purchase out of Bank finance
Collateral Security
Total Value of Security (Prime + Collateral)
Proposed Term Loan Exposure
Working Capital Exposure
Total Exposure
Total Security coverage for proposed exposure (Prime &
Collateral)
Total security coverage (in percentage)
If OCC is not accounted
Total value of Immovable security (Prime + Collateral)
Immovable Security Coverage
If OCC is not accounted

A.
Personal Guarantee Net worth (Rs in crore)
1

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2
3
7. Performance and Financial Indicators:
The performance indicators for operations from 2022 are as follows

8. Balance Sheet:

9. Project Indices:
The project is economically viable. The financial indicators are favourable and are
projected as under;
Financial indicators Particulars Complied
Debt Equity Ratio
Promoters Contribution
FACR
IRR- Spread (applicable to Project cost of Rs 25 Crores and
above)
Overall DSCR - Assumed Rates
Overall DSCR - Reduced Income (5%)
Overall DSCR - Increased Cost (5%)
Repayment

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CHAPTER 5
S.W.O.T AND RISK ANALYSIS

1. Strengths:

2. Weakness:

3. Opportunities:

4. Threats:

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CHAPTER 6
ASSUMPTIONS
The appraisal report has been prepared based on the following assumptions;
1. Installed capacity of the unit is …………….. CuM/ day, CBG production capacity of
………………Kgs/ Day and Bio Fertilizer production capacity of …………… Kg / Day.
2. Capacity Utilization is assumed as under,
Particulars 2023 2024 2025 2026 2027
Installed Capacity per Day (CuM)
Capacity Utilisation (%)
Capacity Utilised (CuM)
3. Income assumptions are as under;
Particulars Rate /MT(Rs)
CBG
Fertilizer
4. The availability of Raw Material and proportion of raw material utilised for Biogas
production has been assumed as under,
Raw Material % Utilization
Cow Dung
Poultry Waste
Fruits and Vegetables waste
5. Cost towards raw material is considered as below,
(Rs in actual)
Particulars Rs /MT
Cow Dung
Poultry Manure
Fruit & vegetable Waste
Total
6. Raw Gas Production in different raw materials are as tabulated below,
Methane
Cow Dung
Other gas
Methane
Poultry Manure
Other gas
Methane
Fruit Waste
Other gas
7. Though party has assumed total production of 8400 Kgs/day of CBG and Bio
Fertilizer at 87 MT/day at 100% capacity utilisation, based on our above
calculations it works out to ............................ Kgs/day of CBG and
…………………… MT/day of Bio Fertilizer production at 100% utilization.
8. Density of Methane and Fertilizer yield is assumed as under,
Installed Capacity Cu. M Per Day
Density of Methane Kg/m^3
Fertiliser Yield MT/MT of Feed Stock (all)

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9. The rate of interest for the term loan is assumed at …………% per annum.
10.Depreciation is calculated as per Companies act.
11.Tax has been calculated on the taxable income.
12.IRR is calculated
13. Cost of transportation and loading & unloading is assumed at ………….. of the
income.
14. Fixed charges of Rs ………… is assumed for every month.
15. Admin Expenses includes expenses under communication, AMC, other Misc
Expenses and it is assumed at 5% of the income.

CONCLUSION
“In view of the above foregoing favourable financial indicators, M/s XYZ –
Establishment of CBG & Bio fertilizer manufacturing unit with per day production
capacity of …………………… Kg Bio CNG and ………………….kg Bio fertilizer, Project
Cost Rs ………………… crores, Term Loan Rs …………………. crores with the Company’s
contribution of Rs …………………….. crores, the project is technically feasible and
financially viable subject to mitigation measures, remarks and assumptions
mentioned in the report.”

M/s xyz – Manufacturing of Bio-CNG and Bio-Fertilizer, --------Bank