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Be Turkapally Proposal
Be Turkapally Proposal
FOR
BE TURKAPALLY
With revenues of over 175 Crores for FY21-22, SPPL prides itself in playing a crucial and active
role in India's downstream oil and gas sector under the brand name Unigas and has built a robust
retail network selling ALPG (Auto LPG), Bulk LPG and Packed LPG under the brand name
UNIGAS and MS/HSD(Petrol/Diesel) under the brand name of Nayara Energy (formerly Essar
Oil).
NZE has a strong Engineering Project, Marketing and Energy Management Team with a
combined experience of over 110 years in building ALDS stations, LPG Bottling plants, Bulk
LPG & Propane installations, LPG LOT systems for industries and reticulated systems for
restaurants, residential communities etc. We have commenced various initiatives for the
conversion of various energy sources from the polluting liquid fuels (for e.g., Furnace Oil &
Diesel) to gaseous fuels (LPG, Propane, LNG & PNG)
NZE has signed PAN India Agreement with Hindustan Petroleum Limited to develop their
Industrial Bulk LGP/Propane Business in July’2022. As part of the Business Development for
HPCL, NZE has already signed Bulk LPG Supply cum Service Agreement with DP COCOA at
Sri City Andhra Pradesh. NZE is executing a project for setting up 1x60KL LPG Mounded
Installation with associated at a total basic cost of Rs.86.70 lacs facilities at DP COCOA Plant
located near Sri City Dist., AP. As SPPL we already executed 1X10 MT LPG Mounded Storage
with associated facility on turnkey basis including (inclusive mechanical, civil and electoral
works) at Vesuvius India Ltd., Auto nagar, Visakhapatnam at total cost basic cost of Rs.114.5
lacs in the year 2014.
NZEPL’s understanding of M/s Biological E Limited:
NZEPL’s Proposal
1. NZEPL is proposing to setup 2 x 60 KL Propane Rated Mounded Storage installation with
associated facilities at an estimated total basic cost of INR 148.07 lakhs (Rupees One Crore
Forty-Eight Lakhs Seven Thousand Only) at NZEPL’s cost on a suitable piece of land of size
41.56 Mtrs. x 36.502 Mtrs. To be offered by BE TURKAPALLY within their premises.
Techno Commercial details of the Proposed 2 x 60 KL Propane Rated Mounded Storage
installation are given as Annexure-I. Overall Costing with BOQ & BOM for 2 x 60 KL
Propane Rated Mounded Storage installation with associated facilities is enclosed as
Annexure-II. Indicative Layout of Installation with area requirement is enclosed as Annexure
– III.
Proposed scope of work of NZEPL:
NZEPL:
1. Shall set up 2 x 60 KL Propane rated Mounded Storage installation with allied facilities
including Fire Fighting facilities at NZEPL Cost at BE TURKAPALLY premises subject
to BE TURKAPALLY signing 10 years LPG supply cum service agreement with
NZEPL. BE TURKAPALLY is also required to provide Bank Guarantee (BG) for INR
148.07 lakhs (Rupees One Crore Forty-Eight Lakhs Seven Thousand Only) basic cost of
Installation as a security towards the Bulk installation investment. The Bank guarantee
will be returned to BE TURKAPALLY after they procure 7614 MT of LPG from
NZEPL.
2. Shall take Approval from PESO for the proposed 2 x 60KL Propane Rated Mounded
Storage installation with associated facilities.
3. Shall provide required civil drawings to BE TURKAPALLY for undertaking required
civil works for the proposed 2 x 60 KL Propane Rated Mounded Storage installation with
associated facilities.
4. Shall take the License from PESO for the Propane Rated Mounded Storage installation
and get it endorsed from local PESO officials after setting up Bulk PROPANE Mounded
Storage installation.
5. Shall sign an Agreement with BE TURKAPALLY for ensuring uninterrupted supplies of
LPG to BE TURKAPALLY from HPCL Mangalore.
6. Shall maintain the Propane Rated Mounded Storage installation during the tenure of the
agreement. However, the cost for the spares shall be borne by M/s. BE TURKAPALLY
at actuals, after completion of one-year warranty period. The scope of AMC is enclosed
as Annexure – IV.
Proposed Scope of Work of M/s. BE TURKAPALLY
BE TURKAPALLY
1- Shall lease a piece of land admeasuring 41.56 Mtrs. x 36.502 Mtrs at INR 1 (Rupee One)
rental per month to NZEPL for the tenure of the agreement and provide the required
documentation for obtaining the required PESO Approval and License for the Propane
Rated Mounded Storage installation.
2- Is required to undertake the modifications for the existing PNG firing burner of Kiln
suitable to LPG Firing.
3- Shall undertake civil works required for setting up 2 x 60 KL Propane Rated Mounded
Storage installation. Approximate cost of the Civil works for the proposed installation is
around INR 75, 00,000 (Rupees Seventy-Five Lakh Only) basic cost.
4- Shall lay secondary piping of around 150 meters (Approximately) from Propane Yard to
the Gas train system. The pipeline proposed is of 5-inch size conforming to IS-1239
Class C with the required fittings like flanges, bends, tees etc. and costs approximately
INR 2,60,000 (Rupees Two Lakh Sixty Thousand Only). NZEPL will undertake supply
and installation of the required secondary piping with fittings subject to placement of
order by BE TURKAPALLY.
5- Shall take the NOC from local District Magistrate to meet the SMPV rules requirements
6- Shall take Consent for Establishment and Consent For Operation for the proposed
Propane Rated Mounded Storage installation from local Pollution Control Board. The
estimated basic cost for obtaining NOC and obtaining PCB clearance is approximately
INR 20,00,000 (Rupees Twenty Lakh Only) (Details are enclosed in Annexure-I). The
services for obtaining the above clearances are indicated as optional services. If BE
TURKAPALLY place the order on NZEPL for obtaining NOC from District authorities
and obtaining Concerned for Establishment and Concerned for Operation from PCB,
NZEPL will execute the order and will obtain the required clearances.
7- Shall provide the required pipeline supports for the secondary piping.
8- Shall sign 10 years long term supply cum Service Agreement with NZEPL for supplying
LPG on regular basis.
9- Shall provide required water and temporary electrical connection at the time of
undertaking the project work.
10- Shall provide a GI water pipeline of 1-inch size in the Propane yard for vaporizer water
filling purpose. Treated portable water shall be provided for vaporizers requirement.
11- Shall provide three phase power with the necessary controls in their MCC room.
Customer shall lay 4 core x 400 sq. mm Aluminum Armored cable from their MCC room
to outside periphery of Mounded Bulk Propane yard with switch gear above of 400 Amps
MCCB having a short circuit current rating of 36KA.
12- Shall Provide Security for guarding the equipment during the project Phase
13- Shall Provide adequate flameproof Lighting required inside the Propane yard
14- Shall provide compressed dry air at 6 bar pressure in 1/2” pipeline at the PROPANE tank
area for operating the ROV’s.
15- Shall provide fire water at 7 kg/Sq.cm. pressure outside 2 x 60 KL Propane Rated
Mounded Storage Tank yard in a minimum 6-inch diameter fire water piping and to
provide fire water storage of minimum 72 KL to meet the fire water requirement of 2 x
60 KL Propane Rated Storage Tank. The fire water required can be made available from
the existing fire water tank depending on the capacity available.
16- If any amendments are required in the Factories License, the same is required to handle
by M/s. BE TURKAPALLY
17- Undertake any other work mentioned in the exclusions of Annexure-I.
LPG Pricing basis for BE TURKAPALLY:
NZEPL will propose to supply LPG from HPCL Mangalore EX-MI (HPCL) on delivered
basis.
The pricing basis proposed for BE TURKAPALLY is under:
1. Ex-MI (HPCL, Mangalore) LPG basic price less standard discount of INR 3,500
(Rupees Three Thousand Five Hundred Only) per MT plus applicable transportation.
GST of 18% as applicable payable extra. The Ex-MI LPG basic price will be
announced by HPCL on month-on-month basis.
2. Though standard discount offered initially is INR 3,500 (Rupees Three Thousand
Five Hundred Only) per MT, after BE TURKAPALLY procuring 7614 MT of LPG
from NZE, an additional discount of INR 2,500 (Rupees Two Thousand Five
Hundred Only) Per MT will be passed on to BE TURKAPALLY. Means, the
standard discount applicable for BE TURKAPALLY on Ex-MI Basic price will be
increased from INR 3,500 (Rupees Three Thousand Five Hundred Only) to INR
6,000 (Rupees Six Thousand Only) after procurement of 7614 MT from NZE. In
other words, after procurement of 7614 MT of LPG from NZE, BE
TURKAPALLY will have an additional saving of (423MT x 2500 x 12) INR
1,26,90,000 (Rupees One Crore Twenty-Six Lakhs Ninety Thousand) Per
Annum.
3. Current Month (Nov’2022) Ex-MI Bulk LPG supply basic price after standard
discount of INR 3,500 (Rupees Three Thousand Five Hundred Only) is working
out INR 62,440 (Rupees Sixty-Two Thousand Four Hundred and Forty Only) per
MT exclusive of GST and transportation applicable is INR 3000 (Rupees Three
Thousand Only) per MT exclusive of GST. Hence landed Bulk LPG supply price
for BE TURKAPALLY in October 2022 is INR 65,440 (Rupees Sixty-Five
Thousand Four Hundred and Forty Only) per MT exclusive of GST. Details of
pricing basis for current month (Nov’22) is enclosed as Annexure-II
4. Based on last 17 months (June’21-Nov’22) Prices, the average Ex-MI Bulk LPG
supply basic price after standard discount of INR 3,500 (Rupees Three Thousand
Five Hundred Only) is working out INR 70,317 (Rupees Seventy Thousand Three
Hundred and Seventeen Only) per MT exclusive of GST and transportation
applicable is INR 3000 (Rupees Three Thousand Only) per MT exclusive of GST.
Hence landed Bulk LPG supply price for BE TURKAPALLY for 17 Months average
price is INR 73,317 (Rupees Seventy-Three Thousand Three Hundred and Seventeen
Only) exclusive of GST. Details of pricing basis for the last 17 months is enclosed as
Annexure-III
5. Currently the transportation cost applicable for LPG per MT is INR 3,000 (Rupees
Three Thousand Only) per MT. Transportation cost may vary from time to time
depending upon on the market conditions.
6. Advance payment is required to be made by BE TURKAPALLY to supply Bulk
LPG. If BE TURKAPALLY wants credit for 15 days, Bank guarantee equivalent to
15 days’ credit loads is required to furnished by BE TURKAPALLY
Tenure of Agreement:
As mentioned above supply cum service agreement between BE TURKAPALLY & NZEPL
is required to be signed for supplying LPG on regular basis for a period of 10 years and for
maintaining the installation. The tenure can be extended for an additional 5 years on mutually
agreeable terms.
ANNEXURE-I
Scope of Work for Bulk LPG Mounded Installation Annual Maintenance Contract:
Up-keeping of Mounded LPG Bulk Installation and associated facilities on a periodical basis.
Once in 2 Months
1] LPG Unloading Pump / Compressor:
1. Greasing the bearings of LPG unloading Pump and Motor.
2. Checking the alignment of the LPG unloading Pump and Correcting it if required.
3. Tightening of Foundation Bolt, if required.
4. Cleaning & checking of Bypass valve.
5. Checking for any noise & vibration.
6. Checking of Drive coupling & Pulley.
7. Replacement of defective parts, if any.
2] LPG Vaporizer:
1. Checking the functioning of Thermostat of the vaporizers for proper set
temperatures.
2. Testing / Checking of Solenoid Valve Coil / Spring functioning.
3. Simulating and testing of the pressure switches of the Vaporizer.
4. Replacement of the defective parts, if any.
5. Checking of Control Panel & Related Interlocks.
3] Electrical:
1. Checking of Cable Gland
2. Checking of Emergency Shut Down System
3. Checking of Interlocking
4] Gauging Equipment’s:
1. Checking the functioning of MRG-OPW, HLS & Dip Stick of the Bullet on Top.
5] Others:
1. Testing & checking of Solenoid Valve, Coil, Spring functioning of ROV.
2. Checking & Cleaning of Ball Valves, Strainer, N.R.V. provided in the LPG
(Liquid) Pipelines. Cleaning of strainers provided in LPG (liquid) pipeline.
3. Lubrication of Valves (Gate valves in FF pipeline) and nuts & bolts for all flanged
valves (Wherever required)
4. Checking entire stretch of pipelines and fittings, within the yard by using soap
solution and take corrective action in the event of any leakage.
5. Check Earthing Continuity strips at all flange joints and rectify or replace
improper connections /copper jumpers.
6. Check condition and continuity of the Unloading LPG Hoses.
7. Checking the voltage of stabilized power supply for the equipment’s. Taking the
corrective action if there is a fluctuation (over Voltage/under voltage).
8. Checking the amperage drawn by the motors of the Decanting Pump and
Vaporizer Heaters. Taking the corrective action if the amperage is not within
range.
9. Checking the working condition of Online UPS for the MRG, ROV’s.
10. Checking of all Fire Hydrant Line, Hydrant Valves, Sprinkler systems (by
operating) and Fire Extinguisher.
11. Cleaning of the high-pressure LPG Regulators & Filters provided in the
Pressure Regulating Station.
12. Checking the condition of the LPG Bullet/Tank Platform.
13. Checking the proper functioning of Gas Monitoring System.
14. Replacement of defective parts if any
15. Checking the Pipeline supports & tightening the clamps. (Wherever required)
The above preventive maintenance checks/activities are in addition to the maintenance
checks/activities carried out on monthly basis.
Once in 6 Months:
1. The above maintenance jobs will be undertaken without disturbing the BE TURKAPALLY
operations.
2. Spare costs are not included in the AMC costs. Spares will be provided on chargeable basis
3. The required work permits to undertake servicing jobs inside the Propane yard is to be taken
from the BE TURKAPALLY.
4. The Maintenance work shall only be started after getting approval of the BE
TURKAPALLY. NZEPL to provide schedules.
5. On Yearly Basis Statutory Testing and Certification of Pop action valves and SRV’s by
PESO approved Third Party Competent agency is mandatory. The Testing and Certification
activity is at Cost basis and the same shall be under the scope of BE TURKAPALLY.
NZEPL will coordinate in arranging the PESO approved Third party certified competent and
testing activity.
6. Once in every six months Calibration of Gas Monitoring System (Leak detection system)
sensors is required. The calibration services shall be provided by OEM service Engineer on
chargeable basis. The cost for the same shall be under the scope of BE TURKAPALLY
7. The servicing jobs have to be undertaken between Sunrise and Sunset. If the works are to be
undertaken after sunset, approval has to be taken from the BE TURKAPALLY.
8. Since the Propane yard is a Hazardous area, all safety precautions will be strictly followed.
Annexure – I
a. Safety Interlock
b. All the safety interlocks required for the safe operation of the facility shall
be ensured.
11. Fire hydrant safety System (inside License area) comprising
a. Above ground piping, with valves, flanges & fittings,
b. water monitors
c. Hydrant valve, hose reel with hose box & branch nozzle
d. M.V. Sprinkler system with piping spray nozzle valves, flanges etc. for
i) Storage tank
ii) Tank truck unloading platform
iii) Mounded RCC tunnel
e. Fire extinguishers ABC type 9Kg, DCP type 75Kg, Co2 type 4.5Kg & Sand
bucket 9Ltr Cap with stand (2No’s. x 3 Stand) (within the PROPANE yard)
12. Electrical
f. Local push buttons for pump (flameproof)
g. MCC control panel
h. Supply of earthing material to hardstand, vapor compressor, pump house &
vaporizer
i. Required Armored Copper cable for pump, Vapor compressor and level gauges
etc.
For Overall costing of the Equipment BOM and BOQ of Propane rated Mounded
Installation and optional services refer Annexure-II.
Taxes & Duties: GST will be charged as per prevailing rates. Currently it is at 18%
ANNEXURE-II
BILL OF MATERIAL WITH PRICE BREAK-UP FOR 2x60 KL PROPANE RATED
MOUNDED TANK INSTALLATION
SUPPLY :
Mounded
S.N DESCRIPTION
Qty.
Tank – 60 KL – Propane rated Mounded tank
Bullet of Horizontal, Cylindrical with hemispherical dished end to be
2 No's.
mounted on concrete piers.
Water Capacity : 60 KL
1
Operating and Design pressure : 21.0 Kg/cm2(g)+Static Head
Design Temperature : (-) 46 Deg C to +55 Deg C
Hydro test pressure : 27.49 Kg/cm2
Cathodic Protection system
Provided on tank with Sacrificial Anodes
2 2 Sets
Type : Magnesium
FLP Junction Box & Cable
3 Safety Fittings - Propane Rating
a) Safety Relief Valve make : Anil Eng.
b) Excess Flow Valve make : Anil Eng. 2 Sets
c) Pressure Gauge make : Baumer
d) Temperature Gauge make : Baumer
4 Tank Gauging equipment’s
a) Magnetic Dip Stick Level Gauge 2 Nos.
Make : Mahalaxmi
b) High Level Alarm Switch 2 Nos.
Make : DAG
c) ATG
MagLink Console LX - 3
ProGauge (XMT) probe with LPG float kit -3500mm
2 Nos.
Steel Well for Probe
Commissioning and Configuration Charges by the OEM
Make : OPW
LPG Vaporizer (PESO Approved) with Flameproof Panel
Type : Electrically Heated Hot Water Bath
type, Shell & Tube Heat Exchanger
5 Make :Flowtech/Any Peso Approved reputed Make 2 Nos.
Capacity : 600 kg/hr.
Coil : S.S.
Nature of Electrical fittings : Flameproof
Unloading Pump 1, 6
Make : Corken (USA)
Model : Z-2000
Flow Rate : 200 LPM
6 Motor type : 5 HP FLP 1 No.
Rating : 440 V 50 HZ
Motor Make : Crompton / Kirloskar
Push Button starter : FLP
By Pass Relief Valve : B-166B1BAU
7 Unloading and Vapour Recovery Compressor 1 No.
Make : Blackmer (USA)
Model : 0161
Motor type : 7.5 HP FLP
Rating : 440 V 50 HZ
Motor Make : Crompton / Kirloskar
Push Button starter : FLP
Decanting Hoses
Type : Stainless Steel Corrugated Hose
Sizes : 50 NB for Liquid & 40 NB for Vapour
8 Inner bellow out of : SS 321 1 Set
Outer braided out of : SS.304
Flanges : Carbon Steel Swivel flanges #300
Stub ends : SS 304
Yard Pipe & Fittings
Product Pipe : SCH-40
Fittings : Forged
9 1 Set
Flanges : WNRF Class 300 ASTM A 105
Gaskets : Spiral Wound
Stud/Nuts : High Tensile
11 Ball Valves and Fittings 1 Set
Pressure Regulator :
Inlet Pressure : 1-17 Bar
Outlet Pressure : 0.5 – 10 Bar
Flow : 600 NM3/Hr.
Qty. : 2 Nos.
Filter :
Working Pressure : 17 Bar
Flow : 600 NM3/Hr.
Qty. : 2 Nos.
Slam Shut Off Valve :
Set Pressure : 2.2 Bar
Flow : 600 NM3/Hr.
Qty. : 2 Nos.
13 Pneumatic System
1 Set
FRL with insulated copper tubing & Brass Ferrule for pneumatic system
14 Fire Fighting system
a) Fire Extinguisher I.S. Std., ABC type 9 Kg. 8 Nos
D.C.P. type 75 Kg. 1 Nos.
CO2 type 4.5 Kg. 2 Nos.
b) Sand Bucket 9 Ltr. Cap. with stand (2 Nos. x 3 stand) 6 Nos.
15 Fire Hydrant system (Inside Licence Area)
Above ground piping 8”, 2” & 1½” with valves, flanges, fittings, etc.
a) 1 Set
Water Monitor
b) Hydrant Valve, Hose Reel with Hose Box & Branch Nozzle 1 Set
M.V. Sprinkler system complete with piping spray nozzle valve, flanges,
c) 1 Set
etc. for
(a) Storage tank – 1 No. & (b) Tank Truck unloading platform (a) Mound
d) 2 Sets
RCC Tunnel
Steel Structure
17 LS
Pipe Support, Railing & Sprinkler support at T/T
Painting of Tank & other
Make : Asian & Sigma
18 LS
Paint system : 1 coat of Red Oxide, 2 coat of synthetic enamel
on pipeline & equipments.
:Corrosion resistance paint on Tank.
TOTAL(A)………
(B)SERVICES :
(C)TRANSPORTATION :
Sr.No Description Unit
Transportation of Tank & equipment to the destination. (including
1 L.S.
loading, unloading & Crane charges)
TOTAL (C) …….
(D)AUXILIARY SERVICES :
Sr.No Description Unit
Local Statutory approvals and DM NOC & PCB approvals
1
(optional services) (preliminary estimated costs)
1) NOC from local district authority for the proposed installation L.S. 1,000,000.00
2) Preparation of Risk Analysis & Onsite Emergency Plan L.S. 400,000.00
3) Obtaining Consent from PCB for Establishment for the 600,000.00
Proposed Mound installation & Consent For Operation after L.S.
completion of Installation.
TOTAL (D) ……. 2,000,000.00
ANNEXURE-III
ANNEXURE-II
ANNEXURE-III
17 MONTHS (JUN’21-NOV’22) AVERAGE PRICING DETAILS FOR LPG SUPPLY
OFFER TO BE TURKAPALLY
BASIC PRICE AT STANDARD Basic Price Transportation Cost per MT
MONTH Mangalore (HPCL) DISCOUNT per MT cost delivered
JUN'21 51600 3500 48600 3000 51100
JUL'21 55330 3500 52330 3000 54830
AUG'21 61140 3500 58140 3000 60640
SEP'21 65580 3500 62580 3000 65080
OCT'21 66010 3500 63010 3000 65510
NOV '21 77760 3500 74760 3000 77260
DEC'21 82180 3500 79180 3000 81680
JAN'22 77050 3500 74050 3000 76550
FEB'22 73000 3500 70000 3000 72500
MAR'22 77680 3500 74680 3000 77180
APR'22 90470 3500 87470 3000 89970
MAY'22 94900 3500 91900 3000 94400
JUNE'22 88987 3500 85987 3000 88487
JUL,22 80720 3500 77720 3000 80220
AUG'22 77120 3500 74120 3000 76620
SEP'22 72830 3500 69830 3000 72330
OCT'22 70410 3500 67410 3000 69910
NOV’22 65940 3500 62440 3000 65440
73817 3500 70317 3000 73317
**GST PAYBALE EXTRA at 18 % and All Prices are in INR
** Transportation cost from HPCL, Mangalore to Mysore may vary depending upon the increase
in Diesel Prices and market conditions. The same shall be communicated to you from time to
time before dispatch.