PROJECT REPORT ON

IDENTIFICATION

OF

“MAJOR DRIVERS”

AND

THERE BY POTENTIAL ASSESSMENT

OF

AUTO LPG

IN

PATNA

COMPLETED AT

INDIAN OIL CORPORATION LIMITED

(MARKETING DIVISION)

BIHAR STATE OFFICE, PATNA

1

SUBMITTED

BY

AJAY KUMAR ROLL NO. -42

UNDER SWEET GUIDANCE OF

DR. N.K.JHA

PROFESSOR (DEPT. OF A.E &C)

PATNA UNIVERSITY

IN PARTIAL FULFILLMENT

OF

MBA (MARKETING)

FROM

ON JUN 2010 TO JULY 201O ( FOUR WEEKS)

2

Acknowledgement

I wish to express my sincere thanks to Indian oil Corporation limited for allowing me to work in an open and free manner in their organization. I am also thankful to my project guide, SHRI SITESH KISHAN ,DEPUTY MANAGER (LPG-E),BSO PATNA AND SHRI U P CHATTOPADHYAY,CHIEF LPG MANAGER ,BSO, PATNA for their continuous support throughout my project work without which the true and accurate understanding of the project would not have been possible.

3

CONTENT 1. Introduction to the organization

Objectives

Vision

Financial performance

Marketing

Products

Refineries

Group companies

Joint ventures

Brands at IOCL

Competitors

2. Auto LPG

Alternative fuels

3. Survey report

4. Scope of Auto LPG in patna

5. Major Drivers

Pollution

Cost

Demand

Govt. norms

Retrofttment

Reliability of supply

Demand centre

6. Limitation

7. Conclusion

8. References

INTRODUCTION TO THE ORGANISATION

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Indian oil is an Indian public – sector petroleum company. It is the commercial enterprise , ranking 105 th on the fortune global listing(2009),consistly improving its position in the fortune ‘Global 500’ listing.it moved 11 places from the year 2008.It is the highest ranked Indian company in the list. It is also the 18 th largest petroleum company in the world.

The company began operation in 1959 as Indian oil company limited. The Indian oil corporation was formed in 1964 ,with the merger of Indian refineries limited. IndianOil and its subsidiaries account for approximately 48% petroleum products market share, 34% national refining capacity and 71% downstream sector pipelines capacity in india. The IndianOil Group of companies owns and operates 10 of India's 20 refineries with a combined refining capacity of 60.2 million metric tonnes per annum (MMTPA, .i.e. 1.2 million barrels per day). These include two refineries of subsidiary Chennai Petroleum Corporation Ltd.

The Corporation's cross-country network of crude oil and product pipelines, spanning over 10,550 km and the largest in the country, meets the vital energy needs of the consumers in an efficient, economical and environment-friendly manner. IndianOil is currently investing Rs. 47000

5

crore in augmentation of refining and pipeline capacities, expansion of marketing infrastructure and product quality upgradation.Indian Oil Corporation Ltd. is India's largest company by sales with a turnover of Rs. 271,074 crore and profit of Rs. 10,221 crore for the year 2009-10. The company has employee strength of almost 36,500 employee. The company is headed by the Chairman and Director (Planning & Business Development) Mr. Brij moh an Bansal .Mr. Bansal is also Chairman of Green Gas Limited, a JV of IndianOil and GAIL (India) Ltd. for city gas business; and IndianOil Petronas Private Ltd., a JV of IndianOil and Petroliam Nasional Berhad (Petronas), Malaysia, for LPG import & marketing business in India.

Mr. Bansal’s expertise in the oil & gas sector has been sought at many international forums. He is the first Chairman of India Chapter of the International DME Association (IDA), USA, that works to promote Di-Methyl Ether across the world. He is also Chairman Emeritus of the Bio-Diesel Association of India. Mr. Bansal is a B.Tech in Chemical Engineering and D.I.I.T in Process Plant Engineering from the prestigious Indian Institute of Technology, Delhi. With over 35 years of extensive work experience in the oil & gas sector in areas spanning business development, R&D, refining and technical services, Mr. Bansal has been a member of the IndianOil Board since the year 2005.

Being a public sector company , the majority stake in the company lies with the government of india and central cabinet ministers for petroleum have a decisive say in companies policies. IOCL with its staggering profit figures year after year is classified as an A+ grade PSU in India.The company is not only contributing in terms of financial figures to the national income but also helps in infrastructure development , Military operations, Transportation network operation through its homogeneous network of fuelling stations in the entire country. Indian oil operates the largest and the widest network of fuel stations in the india. IndianOil touches millions of lives everyday through a countrywide network of over 35,600 sales points. They are backed for supplies by 167 bulk storage terminals and depots, 98 aviation fuel stations and 88 Indane (LPGas) bottling plants. Validating the trust of 56.8 million households, Indane earned the coveted status of

6

'Superbrand' in 2009. About 7,593 bulk consumer pumps are also in operation for the convenience of large consumers, ensuring products and inventory at their doorstep.IndianOil operates the largest and the widest network of petrol & diesel stations in the country, numbering 18,643 including 2947 Kisan Seva Kendras (KSK) outlets in the rural markets. Indane cooking gas is present in 2,764 markets through a network of 5,095 Indane Distributors. IndianOil's ISO-9002 certified Aviation Service commands almost 63% market share in aviation fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines and the Indian Defence Services. The Corporation also enjoys 65% share of the bulk consumer business, including that of railways, state transport undertakings and industrial, agricultural and marine sectors. Indian oil has a research & development center(R & D) at Faridabad that supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad.

Subsequently, Indian oil technologies limited - a whole owned subsidiary , was set up in 2003 , with a vision to market the technologies development at Indian oil’s research and development center. It has been modeled on the R & D marketing arms of Royal Dutch Shell and British Petroleum.

OBJECTIVES. To serve the national interests in oil and related sectors in accordance and consistent with Government policies.

. To ensure maintenance of continuous and smooth supplies of petroleum products by way of crude oil refining, transportation and marketing activities and to provide appropriate assistance to consumers to conserve and use petroleum products efficiently.

. To enhance the country's self-sufficiency in crude oil refining and build expertise in laying of crude oil and petroleum product pipelines.

. To further enhance marketing infrastructure and reseller network for providing

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assured service to customers throughout the country.

. To create a strong research&development base in refinery processes, product formulations, pipeline transportation and alternative fuels with a view to minimizing/eliminating imports and to have next generation products.

. To optimise utilisation of refining capacity and maximize distillate yield and gross refining marg

. To maximise utilisation of the existing facilities for improving efficiency and increasing productivity.

. To minimise fuel consumption and hydrocarbon loss in refineries and stock loss in marketing operations to effect energy conservation.

. To earn a reasonable rate of return on investment.

. To avail of all viable opportunities, both national and global, arising out of the Government of India’s policy of liberalisation and reforms.

. To achieve higher growth through mergers, acquisitions, integration and diversification by harnessing new business opportunities in oil exploration&production, petrochemicals, natural gas and downstream opportunities overseas.

. To inculcate strong ‘core values’ among the employees and continuously update skill sets for full exploitation of the new business opportunities.

. To develop operational synergies with subsidiaries and joint ventures and continuously engage across the hydrocarbon value chain for the benefit of society at large.

. To ensure adequate return on the capital employed and maintain a reasonable annual dividend on equity capital.

. To ensure maximum economy in expenditure.

8

. To manage and operate all facilities in an efficient manner so as to generate adequate internal resources to meet revenue cost and requirements for project investment, without budgetary support.

. To develop long-term corporate plans to provide for adequate growth of the Corporation’s business.

. To reduce the cost of production of petroleum products by means of systematic cost control measures and thereby sustain market leadership through cost competitiveness.

. To complete all planned projects within the scheduled time and approved cost.

VISION

FINANCIAL PERFORMANCE

IndianOil’s gross turnover (inclusive of excise duty) for the year 2009-10 touched Rs. 2,71,074 crore. The Profit After Tax was Rs 10,221 crore. For the year 2009-10, the company’s Earnings Per Share (EPS) stands at Rs 42.10 as

9

compared to Rs. 12.15 for 2008-09. The total net under-recovery on account of price under–realisation on PDS Kerosene and domestic LPG in the financial year 2009-10, is Rs. 3,159 crore. This is in comparison with a net under-realisation of Rs.Nil crore in 2008-09.For the year 2009-10, IndianOil has accounted for cash compensation of Rs 15,172 crore, out of which Rs. 7,100 crore has been received during the year. In addition, the company has been granted discount of Rs 7,548 crore received from upstream companies, as per the under recovery sharing mechanism.The Board of Directors has recommended a dividend of Rs 13 per share. The Gross Refining Margin for April-March 2010 is USD 4.47 per barrel as compared to USD 3.69 per barrel during the previous year.

MARKETING

IndianOil continued to maintain its dominance in the market clocking the highest ever level of sales during the year 2009-10. Sales volume and market shares improved in almost all the segments in marketing. In the high-volume, high-competition direct consumer business, IndianOil continued to be the leader with a market share of 65% and long-standing business ties with core sector customers were further strengthened.

During the year, BS-IV quality petrol and diesel was launched in 13 cities. Retail sales in MS (petrol) and HSD (diesel) registered a robust growth of 14% and 9.2% respectively, with the expansion of IndianOil’s countrywide network which touched 18,643 petrol/diesel stations (retail outlets). This includes commissioning of about 414 special-format Kisan Seva Kendra (KSK) outlets in rural markets during the year, taking their total to 2947. The Rajiv Gandhi Grameen LPG Vitarak scheme, a new concept to extend the availability of LPG to the rural market was launched during the year. IndianOil enrolled 42 lakh new LPG customers during the year 2009-10, raising the total number of Indane households to nearly 574 lakh.

Non-domestic packed LPG sales recorded a 29% growth while bulk LPG sales registered a 45% growth over the previous year. To cater to the growing demand of Autogas (LPG), 50 Auto LPG Dispensing Stations were commissioned during the year taking their tally to 273. During the year, IndianOil's market share in the finished lubes segment grew by 1.4%. SERVO lube network was also expanded to over 200 auto stockists, 74 industrial stockists, 9 marine stockists and 27 CFAs. IndianOil's world class SERVO lubricants were formally launched in Qatar and exports touched nine TMTs with a growth of 34%. IndianOil continued to be the leader in the aviation business with a

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market share of 62.9% among PSUs and several new businesses of international airlines were garnered during the year.

PRODUCTS

Products made by Indian oil corporation limited at several refining station.

. Indane gas

. Auto gas

. Natural gas

. Petrol / Gasoline

. Diesel / gas oil

. ATF / jet fuel

. SERVO LUBRICANTS AND GREASES

. Agricultural spray oils

. Automotive greases

. Automotive lubricating oils

. Automotive speciality oils

. Industrial greases

. Industrial lubricating oils

. Industrial speciality oils

. Metal working oils

. Railroad oils

. Railroad greases

. Marine fuels and lubricants

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. MS / Gasoline

. PETROCHEMICALS

. LAB – HMW

. LAB –LMW

. PTA

. POLYMERS

. Superior kerosene oil

. Crude oil

. And some special products

REFINERIES

Digboi Refinery:- in Upper Assam, is India's oldest refinery and was commissioned in

1901. Originally a part of Assam Oil Company, it became part of IndianOil in 1981. Its

original refining capacity had been 0.5 MMTPA since 1901. Modernisation project of

this refinery has been completed and the refinery now has an increased capacity of

0.65 MMTPA.

Guwahati Refinery:- the first public sector refinery of the country, was built with

Romanian collaboration and was inaugurated by Late Pt. Jawaharlal Nehru, the first

Prime Minister of India, on 1 January 1962.

Barauni Refinery, in Bihar, was built in collaboration with Russia and Romania. It was

commissioned in 1964 with a capacity of 1 MMTPA. Its capacity today is 6 MMTPA.

Gujarat Refinery, at Koyali in Gujarat in Western India, is IndianOil’s largest refinery.

The refinery was commissioned in 1965. It also houses the first hydrocracking unit of

the country. Its present capacity is 13.70 MMTPA.

Haldia Refinery is the only coastal refinery of the Corporation, situated 136 km

downstream of Kolkata in the Purba Medinipur (East Midnapore) district. It was

commissioned in 1975 with a capacity of 2.5 MMTPA, which has since been

increased to 5.8 MMTPA

Mathura Refinery was commissioned in 1982 as the sixth refinery in the fold of

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IndianOil and with an original capacity of 6.0 MMTPA. Located strategically between

the historic cities of Delhi and Agra, the capacity of Mathura refinery was increased to

7.5 MMTPA.

Panipat Refinery is the seventh refinery of IndianOil. The original refinery with 6

MMTPA capacity was built and commissioned in 1998. Panipat Refinery has doubled

its refining capacity from 6 MMT/yr to 12 MMTPA with the commissioning of its

Expansion Project.

Subsidiary refineries — Bongaigaon Refinery (2.95 MMTPA), Chennai Petroleum (9.5

MMTPA)

GROUP COMPANIES

IndianOil is currently metamorphosing from a pure sectoral company with dominance in downstream in India to a vertically integrated, transnational energy behemoth. The Corporation is already on the way to becoming a major player in petrochemicals by integrating its core refining business with petrochemical activities, besides making large investments in E&P and import/marketing ventures for oil&gas in India and abroad. 

With a vision to evolve into a major technology provider through excellence in management of knowledge and innovation, IndianOil has launched IndianOil Technology Ltd. to market the intellectual properties developed by IndianOil's R&D Centre. 

IndianOil Technologies Ltd : IndianOil Technologies Ltd. is the marketing arm of IOCL

which markets the entire range of technologies developed at the IndianOil R&D

Centre, Faridabad. IndianOil Technologies Ltd. headquarters is located at the

IndianOil R&D Centre.

IndianOil (Mauritius) Ltd.

Lanka IOC PLC - Group company for retail and storage operations in Sri Lanka. It is

listed in the Colombo Stock Exchange. It was locked into a bitter subsidy payment

dispute with Sri Lanka's Government which has since been resolved.

IOC Middle East FZE

Chennai Petroleum Corporation Limited

Bongaigoan Refinery and Petrochemicals Ltd.

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JOINT VENTURE (As on 31.03.2009)

Name of JV Date of Incorporation

Promoters & Equity

Area(s) of Operation

Avi-Oil India Limited

04.11.1993 IndianOil & Balmer Lawrie: 25% eachNeden BV, the Netherlands: 50%

To blend, manufacture and sell synthetic, semi synthetic and mineral based lubricating oils, greases and hydraulic fluids, related products and specialties for Defence and Civil Aviation uses.

IOT Infrastructure& Energy Services Ltd.(Formerly known as Indian Oiltanking Limited)

28.08.1996 IndianOil & OiltankingGmbH, Germany: 50% each

To build and operate terminalling services for petroleum products.

IndianOil Petronas Private Limited

03.12.1998 IndianOil & Petronas,Malaysia: 50% each

To construct and import facilities for LPG import at Haldia and to engage in parallel marketing of

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LPG.

Lubrizol India Private Limited

01.04.2000 IndianOil & Lubrizol Corporation, USA: 50% each

To manufacture and market chemicals for use as additives in fuels, lubricants and greases.

Petronet LNG Limited

02.04.1998 IndianOil, BPCL, GAIL India Limited& ONGC: 12.50% eachGaz de France International: 10%Asian Development Bank: 5.2%Public :34.8%

Development of facilities for import and regasification of LNG at Dahej and Kochi.

Petronet India Limited

26.05.1997 IndianOil :18% BPCL &HPCL:16% eachReliance Industries Limited,IL&FS Trust Company Limited,ICICI Bank Ltd., State Bank ofIndia & Essar Oil Limited:10% each

To implement petroleum products, pipeline projects through Special Purpose Vehicles.

Petronet VK Limited

21.05.1998 IndianOil & Petronet India

To construct and operate a

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Limited: 26% each,Reliance Industries Limited& Essar Oil Limited:13% each,SBI, GIIC, Kandla Port Trust,Infrastructure Leasing & FinancialServices Limited: 05% each;Canara Bank: 02% each

pipeline for transportation of petroleum products from Vadinar to Kandla.

Petronet CI Limited

07.12.2000 IndianOil, Petronet India &Reliance Petroleum Limited: 26% eachEssar Oil Limited & BPCL: 11% each

To construct and operate a pipeline for evacuation of petroleum products from RPL and EOL refineries at Jamnagar as well as from Gujarat Refinery at Koyali to feed the consumption zones at Central India.

Green Gas Ltd.

07.10.2005 IndianOil & GAIL India Limited

City Gas Distribution in Lucknow and

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: 25% each,Infrastructure Development Finance Company Limited,IL&FS Investment Mangers Limited: 20% eachOthers: 10%

Agra.

Indo Cat Pvt. Limited

01.06.2006 IndianOil & Intercat Inc.,USA: 50% each

Manufacturing & marketing of FCC catalysts and additives.

IndianOil Skytanking Limited

21.08.2006 IndianOil, IOT Infrastructure& Energy Services Ltd.(Formerly IOTL) &Skytanking HoldingGmbH, Germany: 33.33% each

Design, finance, construct, operate & maintain aviation fuel facility projects.

IndianOil Power Consortium Limited

06.10.1999 IndianOil & MarubeniCorporation, Japan: 50% each

To build and operate its own power generation plant at Panipat utilizing Petcoke from Panipat Refinery.

Suntera Nigeria 205

09.05.2006 IndianOil & Oil India: 25% each

Investments in oil and gas

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Limited Suntera Resources Ltd., Cyprus: 50%

industry especially in the upstream sector

IndianOil-CREDA Biofuels Limited

06.02.2009 IndianOil: 74%, ChattisgarhRenewal Energy DevelopmentAgency : 26%

Farming, cultivating, manufacturing, production and selling biomass, bio-fuels and allied products & services

BPCL-Bharat Petroleum Corporation Ltd.; EOL-Essar Oil Ltd.; GAIL-GAIL (India) Ltd.; HPCL-Hindustan Petroleum Corporation Ltd.; IL&FS-Infrastructure Leasing & Financial Services Ltd.; IndianOil-IndianOil Corporation Ltd.; KPT-Kandla Port Trust; ONGC-Oil & Natural gas Corporation Ltd.; PIL-Petronet India Ltd.; RPL-Reliance Petroleum Ltd.; SBI-State Bank of India; GIIC-Gujarat Industry Investment Corporation; CB-Canara Bank; UP State Govt-Uttar Pradesh State Government; IDFC-Indian Development Finance Corporation; CREDA-Chhattisgarh State Renewable Development Agency; IOTL-IndianOil Tanking Ltd

BRANDS AT IOCL

A Brand is a product, service, or concept that is publicly distinguished from other products, services, or concepts so that it can be easily communicated and usually marketed. A brand name is the name of the distinctive product , service, or concept. Branding is the process of creating and disseminating the brand name. branding can be applied to the entire corporate identity as well as to individual product and service names.

Brand at IOCL can be broadly categorized into three category , namely, Energy, Retail,and customer loyalty programs.

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ENERGY

(a) Xtra mile(b) Xtra premium(c) Servo(d) Auto gas(e) Indane(f) Indian oil aviation

RETAIL

(a) Xtra care(b) Kisan seva kendras(c) Swagat(d) LNG at doorstep

CUSTOMER LOYALTY PROGRAM

(a) Xtra Rewards(b) Xtra power

COMPETITORS

Indian oil has two majors domestic competitors

. Bharat petroleum corporation limited

. Hindustan petroleum corporation limited

Both are state controlled ,like Indian oil corporation limited

There are two private competitors also

. Reliance petroleum

. Essar oil

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AUTO LPG

AutoGas (LPG) is a clean, high octane, abundant and eco-friendly fuel. It is obtained from natural gas through fractionation and from crude oil through refining. It is a mixture of petroleum gases like propane and butane. The higher energy content in this fuel results in a 10% reduction of CO2 emission as compared to MS.AutoGas is a gas at atmospheric pressure and normal temperatures, but it can be liquefied when moderate pressure is applied or when the temperature is sufficiently reduced. This property makes the fuel an ideal energy source for a wide range of applications, as it can be easily condensed, packaged, stored and utilised. When the pressure is released, the liquid makes up about 250 times its volume as gas, so large amounts of energy can be stored and transported compactly.

The use of LPG as an automotive fuel has become legal in India with effect from April 24, 2000, albeit within the prescribed safety terms and conditions. Hitherto, the thousands of LPG vehicles running in various cities have been doing so illegally by using domestic LPG cylinders, a very unsafe practice. Using domestic LPG

20

cylinders in automobiles is still illegal. The fuel is marketed by IndianOil under the brand name ‘AutoGas’"IndianOil has setup 274 Auto LPG Dispensing Stations (ALDS) covering 150 cities across India." AutoGas impacts greenhouse emissions less than any other fossil fuel when measured through the total fuel cycle. Conversion of petrol to AutoGas helps substantially reduce air pollution caused by vehicular emissions.The saving on account of conversion to AutoGas in comparison to petrol is about 35-40%. Low filling times and the 35-40% saving is a reason enough for a consumer to convert his vehicle to AutoGas.

                                 Gas Conversion

1. ADVANTAGES OF LPG ON PETROL ?

LPG has an anti knocking power which is comparable with Gasoline and superior to Diesel.

The oil drain period of car running on Auto LPG will increase and it will also extend the life of spark plug as Auto LPG is a clean fuel.

Adulteration or spilling or theft is not possible

LPG reaches the engine in pure form resulting in an improved air / fuel mixture and enables refined combustion.

There is hardly any discharge of co(Carbon mono - oxide ) as compared to petrol and diesel since the exhaust fumes contains less harmful substance. The CO emissions are around 80% less than petrol and 40 % less than diesel. Hydrocarbon emissions are 60 % less than petrol and 50 % less than diesel.

 

    

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Nitrous Oxide emissions are around 80 % less than petrol and 90 % less than diesel. Carbon dioxide which contributes to global warming is less in LPG.

Existing fuel system is retained which can work as an option and thus increases the flexibility of the usage of the mode of fuel.

2. IS IT LEGAL?

LPG as motor fuel is now legal, with the amendment of all statutory regulations, such as CMV Act, CMV Rules, LPG Control Order etc. vehicles owners have to use only approved brand of kits (Type approvals now being granted by the testing agencies) and get the vehicle R.C.book endorsed by the local R.T.O

The retro - fitment of LPG kits can be carried out only by authorized workshops approved by RTO and Transport Dept.

3. GAS & PETROL CAN WORK IN THE SAME ENGINE

Yes, LPG like CNG can be used in bi-fuel mode for which selector switch is erected on dashboard,to activate Solenoid valve of either MS or LPG.

4.DUEL FUEL SYSTEM ?

As stated above,you can start and run the car with either gas or petrol by using an electronic change over switch provided on dashboard.

5. SAFETY ?

The LPG Conversion Kit have large number of inherent safety features and is also manufactured, tested and installed as per highest international standards. It is thus safe in all the ways to convert

22

the vehicle using LPG Conversion kit.

To understand this better certain facts are to be given due consideration fixed Auto LPG Tanks are made as per BIS Standards to meet all safety requirements.

A tank can normally burst only in the event of a fire in a car where the surrounding temperature exceeds atleast 400o - 500o degree centigrade which again never happens in a car due the presence of pressure relieving devices. The tanks fitted with multifunction valve with large number of safety fittings like Safety Relief Valve, Excess Flow Valve. ROV's fusible plug fitted on it.

6. WHERE IS THE TANK PLACED IN THE CAR?

It is fixed in the luggage space of your car. It is fastened with metal strap so that it doesnot move while the car is running. As per BIS code it has to be permenantely fitted tank an should be integral part of vehicle ( As per BIS 14899 for fuel tank container and as per LPG control order)

7. WILL AN EXCESS LOAD OF TANK AFFECT MY CAR SUSPENSION?

No a car is designed to carry sufficient load. This is similar to carrying a passenger with luggage. Moreover, the weight of empty LPG tank of 60 Ltrs. capacity of weights not more than 20 kgs.

8. HOW WILL I KNOW THAT I SHOULD REFILL, THE

The content gauge on the multivalve and the indicator on the switch mounted on the dash board shows the level of LPG inside the tank.

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9. HOW MUCH MILEAGE DO I GET FROM LPG ?

1 Ltr of LPG will give approx .0.8 to 0.9 time mileage as petrol. For Eg : If a car on a petrol runs for 10 Km the same will run for 8-9Km with 1 Ltr of LPg considering the lower coast of LPG 40 % coast of savings could be expected.

10. WILL IT AFFECT MY CATALYTIC CONVERTOR ?

No it will not damage any part of the engine or fuel system.There is no lead in LPG

11. HOW IS ITS PERFORMANCE ?

Very low emissions, no smoke no compromise on the pick up.

12. IN THE EVENT OF ANY LEAKAGE WILL IT EXPLODE ?

As explained earlier the fuel tanks have several pressure relieving devices to avert any blast or explosions. This is demonstrated in Bonfire tests, where in the car is set on fire. the leaked product from the vent will get out from the rear tyre, but even after prolonged fire there are no explosions occurring due to the provison of pressure relieving devices.

   13. IN A SMALL CAR LIKE MARUTI WILL IT NOT OCCUPY MY LUGGAGE SPACE ?.

A Smaller tank is fitted in small cars to facilitate easy removal of Stepny Torroidal tanks (in the shape of a tyre) can also be installed which help to save luggage room. Alternatively small tanks 36 Liters are available to conserve the space

24

14. WILL THERE BY ANY SMELL IN THE PASSENGER CABIN ?

Ethyl Mercaptan is added in 20 PPM to Auto LPG to detect the leakage. This is a safety feature. At the time of installation approved leakage test is done and a leakage free installation is ensured.

15. WHAT IS THE PRICE OF THE CONVERSION KIT

For carburetor Cars Rs. 23,000/- including installation /fittling charges.

16. PROCEDURES FOR APPROVAL WITH  R.T.O ?

On getting your vehicle converted with an approved LPG conversion kit, the Retro-fitment Centre will facilitate the endorsement in the vehicle R.C.Book by the local R.T.O this endorsement permits legal use of the kit in your vehicle .

17. CAN WE USE CNG KITS AND TANKS ON LPG

- NO-The properties and characteristics of CNG and LPG are different. The safety and other devices are set for a particular pressure of LPG. There is no fill limiter in case of CNG tanks as it meant for the Services of Gas. The fill connections are also different for LPG and CNG. Hence, not advisable to use CNG kits for LPG Service.

IS AUTO LPG SAFE?

YES, LPG is absolutely safe and in fact safer than petrol

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The gas is stored in the vehicle in liquid form and contained in an Auto LPG Tank. The Tank is designed from special low carbon steel.

Tests and practical experiences have shown that LPG can only ignite or cause a fire if it leaks and spreads at tight area and then it is ignited. Such a situation does not arise in automobile   as the engine compartment is open to air and any leaked gas will escape.

Moreover, these are the same kits as used in European countries. If the Autogas system and tanks were not safe would the large number of car users in America, Australia and Europe where there are stringent safety norms have changed their vehicles to run on Autogas?

What you have to do is to ensure that you use a good quality approved kit as these kits undergo rigorous tests ensure safety, also ensure that you have the kit fitted by an approved       Retro fitment Center.

                                                  

Approvals Required

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Petroleum&ExplosivesSafetyOrganization, Ministry of Commerce and

Industry Government of  India

Legal Metrology                         Ministry of Consumer Affairs

Food & Public Distributer

Dept: of Consumer

Affairs

    Govt: of India

Food & Public Distributer Dept:of Consumer Affairs

   VRDE

 

Vehicle Research and DevelopmentEstablishment

    ARAI

 

Automobile Research Association of India

AUTO LPG DISPENSING STATION

27

     

The state - of - the - art energy efficient and eco-friendly technologies, secured through internationally reputed collaborations, have enabled to install and operate ALDS with specific standards and promote Auto LPG, the substitute for conventional fuels.

ALDS of Auto Gas Energy India Ltd includes design, supply, erection, installation, testing and commisioning. has been recognized as an Approved Auto LPG Installer and also as an Approved Auto LPG Operator for Auto LPG Dispensing Stations regulated under the Static and Mobile Pressure Vessels (Unfired) Rules, 1981. Presently, GAS ENERGY has commissioned 18 ALDS and is at the verge of commissioning more than a dozen stations.

    

  

promotes the use of Auto LPG through its ALDS and ensure uninterrupted supply of bulk to its ALDS on the strength of its experience and perceived arrangements with globally renowned Multi National Companies that have large infrastructure in India. The Operating Techniques, Service Support, Training Measures, Customer Care and Enviable record of Auto gas supply has  won appreciation from all quarters.

  

Total number of motor vehicles registered in india

Year (As on 31 st

ALL VEHICLES

TWO WHEELERS

CARS,JEEPS & TAXIES

BUSES GOOD VEHICLES

OTHERS(*)(IN

28

march) (1)

(2) (3) (4) (5) (6)

THOUSAND) (7)

1951 306 27 159 34 82 41956 426 41 203 47 119 161961 665 88 310 57 168 421966 1099 226 456 73 259 851971 1865 576 682 94 343 1701976 2700 1057 779 115 351 3981981 5391 2618 1160 162 554 8971986 10577 6245 1780 227 863 14621991 21374 14200 2954 331 1356 25331996 33786 23252 4204 449 2031 38501997 37332 25729 4672 484 2343 41041998 41368 28642 5138 538@ 2536 45141999 44875 31328 5556 540@ 2554 48972000 48857 34118 6143 562@ 2715 53192001 54991 38556 7058 634@ 2948 57952002(R) 58924 41581 7613 635@ 2974 61212003(P) 67033 47525 8719 727@ 3488 6674

Automobile Pollution : A Reality

The automotive industry has made steady

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improvements in the area of fuel efficiency, and they promise more improvements to come. Automotive engineers have cut the weight of cars in half in the last 25 years. The miles-per-gallon rating of passenger cars has improved 39 percent in the last ten years. Unfortunately, fuel consumption has increased by 19 percent. According to Vital Signs, the increased emissions from the world's vehicles lead to global warming, acid rain, smog, and the disastrous health effects of air pollution. The internal combustion engines in cars produce oxides that combine with water vapor in the air to form acid rain. Smog is formed from the chemical reaction between unburned hydrocarbons and the oxides of nitrogen in automobile exhaust. The tons of carbon dioxide produced by burning gasoline is the leading cause of the greenhouse effect, which causes global warming. Vehicles contribute to an estimated 60-70 percent of urban air pollution. Automobiles do not maximize the energy they are producing, creating unnecessary waste. The largest area of needed improvement in the automobile is energy efficiency. Only 13 percent of the energy used by today's vehicles is used for propulsion. The most promising solution to this problem is alternative fuel vehicles such as Natural Gas Vehicles (NGV), electric vehicles, & hybrid vehicles.

Pollution Control

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Conditions governing the grant of authorization to conduct PUC tests.

1. The authorization granted is valid for a period of one year from the date of issue. Grant of fresh authorization for a further period of one year shall be subject to the performance of the center during the last year.

2. The instrument to be used for measuring the pollution levels of automobiles should be approved by any one of the following agencies, namely

a)Vehicle Research & Development Establishment, Ahmednagar.

b) Automotive Research Association of India, Pune.

c)Central Machinery Testing and Training Institute, Budni, Madhya Pradesh.

d)Indian Institute of Petroleum, Dehradun, or e) National Environmental Engineering Research Institute, Nagpur.

3.The procedure for conducting the test shall be as below

Diesel Vehicles – Free Acceleration Method

The reading of pollution levels should be noted when the acceleration pedal is fully pressed. An average of five such readings should be taken as the final reading.

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Petrol Vehicles – Idling Limits

The reading shall be noted when the vehicle is idling.

4. The instrument should be calibrated at least once in a year and as recommended by the manufacturer and certificate of last calibration should always be made available for inspection. The instrument shall also be produced for inspection (of calibration and efficiency) to the officers of the Motor Vehicles Department.

5. In the city of Mumbai, the validity of the test report from the date of test, shall be as under:

Sr.No PUC Test Reading Validity of PUCCrtificate

Petrol Driven Vehicles

Diesel Driven

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(Idling CO emission limits)

Vehicles ( measured by free acceleration method)

2&3 Wheelers

4 Wheelers

1 Less than 3 %

Less than 1.5 %

Less than 50 Hartridge Smoke Units.

6 Months

2 3 to 4 % 1.5 to 2.5 %

50 to 60 Hartridge Smoke Units

4 Months

3 4 to 4.5 %

2.5 to 3.00 %

60 to 65 Hartridge Smoke Units

2 Months

6 The PUC Test cerrtificates shall be obtained only from the printing presses informed from time to time and shall be serially numbered. A separate account of receipt and utilization of these certificates shall always be maintained and produced for inspection on demand. The PUC certificate should be signed by only one of the persons authorized in this behalf, as mentioned in the application form for grant of authorization. The PUC certificate should indicate the pollution levels

33

before and after adjustments

7 The persons conducting the test should hold a minimum qualification of certificate in Automobile Engineering or Motor Mechanics issued by Industrial Training Institute of Government of Maharashtra and should also know the procedure for minor adjustments/repairs with which the pollution levels can be brought down, without affecting overall performance of the engine.

8 In case of vehicles showing higher level of emission than the prescribed limits under Central Motor Vehicles Rules 1989 the registration number of such vehicles should be informed to concerned R.T.O, Dy.R.T.O Or Asst. R.T.O by holder of the Centers within 24 hours.

9 The authorization granted shall be immediately cancelled and holder thereof shall be criminally prosecuted if any malpractices are noticed in running of the center or issue of PUC Certificates.

Instructions to all PUC centers

Instructions to all PUC centers regarding procedure to be followed while checking the pollution level of Vehicles.

1 The readings of pollution level should be taken only when the engine attains normal working temperature

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of about 80oC’, which is reached after running the engine for 5 minutes.

2 The pollution reading should be noted by pressing the accelerator paddle fully and uniformly under the supervision of either the checking officers or authorized volunteers.

3 The equipment being used to check the pollution levels should be necessarily provided with an attached printer and voltage stabilizer. Also, the readings should be supplied on the print-out from the printer.

4 The list of names of persons authorized to conduct PUC tests should be exhibited near the machines. Such an authorized person should be trained and certified by the PUC equipment manufacturer and his name should be communicated to the R.T.O as and when required.

  No other person except the authorized person as above should either conduct the PUC test or record the readings thereof. If un authorized person is found carrying out PUC tests or issuing PUC certificates, the authorization granted to the center shall be liable for cancellation immediately and owner/operator of such center shall be liable for criminal prosecution for issuing bogus certificate.

5 The machine and all its operating parts like filter glass should be cleaned as recommended every day before the first reading is taken and at least every fifth reading thereafter. The machine should be got

35

calibrated from the manufacturer at the frequency shown below

 a) Machine for petrol vehicles: 1000 tests or 2 months, whichever is earlier.

 b) Machine for diesel vehicles: 1000 tests or 3 months, whichever is earlier.

Why does Euro Norms have to be restricted to certain pockets in the country?

Meanwhile, emission from 18 million vehicles all over the country in 1996 was 43,000 tonnes per day from 32 million vehicles. The projected figures for 2000 are 63,000 tonnes per day from 65 million vehicles.

On-road emissions can be brought down by 80% by good care, tuning and cleaning of vehicle engines, by inspection and maintenance, by good emission worthy fuels and by good roads and traffic management. Good care and maintenance mean periodical tuning (once in 3 months) cleaning of carbon deposits (once in 3 months), overhauling carburetor and fuel (once in 6 months) and so on. The solution lies in collaboration among the automotive and oil companies. Notably the European Programme on Emission, Fuels and Engines Technology has amply recognized this view, which addresses the vehicle and fuel system as a whole.

Better roads and traffic management also brings down the emission level by 15 - 20 %

On- road Vehicle Emission

Year Before Control Strategy After Control Strategy

1989 26,000 5,200

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1996 43,000 8,600

2000 63,000 12,600

Catalytic Converters have become mandatory since 1995 for all passenger cars that increase efficiency by upto 80 - 90 % with the use of fuel injection, oxygen sensor and electronic engine management. They also substantially reduce emissions of carbon monoxide and hydrocarbons. An important factor, when it comes to combating pollution is the age of the vehicle. Indian laws, whether it is the Central Motor Vehicles Act of 1988 or the Central Motor Vehicles Rules of 1989, place no limit on the age of vehicles plying on Indian roads and also lack any provisions dealing with the scraping of old commercial vehicles.

In the meanwhile, the Supreme Court's directives on the application of Euro Norms do not apply to old, personalized vehicles.

Euro II norms are very much a reality now, so much so that the latest advertising fad is that the automobile

is "Euro II compliant". For the sake of all those who have been able to brave the pollution, it is time they had a reprieve.

Alternate Fuels

The entire surface transport of India is based on petroleum fuel, but it’s availability is of growing concern. The production of domestic crude has been declining and

37

the transport system has been increasingly dependent on imported crude oil to meet its needs. There is a growing concern that the world may run out of petroleum based fuel resources. All these make it imperative that the search for alternative fuels is taken in right earnest.The alternative fuels aspiring to take the place of petroleum are:

PropaneLiquified petroleum gas ( LPG ) consists mainly of propane, propylene, butane, and butylene in various mixtures. It is produced as a by-product of natural gas processing and petroleum refining. With propane’s simple molecular composition, propane - fueled vehicles emit significantly lower levels of carbon monoxide, hydrocarbons and nitrogen oxides than gasoline - fueled vehicles. The level of air - toxic emissions from propane -fueled vehicles is also low. According to the National Propane Gas Association, U.S.A., spark plugs from a propane vehicle last from 80,000 to 100,000 miles and propane engines can last two to three times longer than gasoline or diesel engines.

EthanolEthanol (ethyl alcohol, grain alcohol, ETOH) is a clear, colorless liquid with a characteristic, agreeable odor. Two higher blends of ethanol, E-85 and E-95 are being explored as alternative fuels in demonstration programs. Ethanol is also made into ether, ethyltertiary-butyl ether (ETBE), that has properties of interest for oxygenated gasoline and reformulated fuels. The environmental benefits of ethanol include:

10% ethanol blends reduce carbon monoxide better than any other reformulated gasoline blend.Ethanol is a safe replacement for toxic octane enhancers in gasoline such as benzene, toluene and xylene. ETBE lowers gasoline volatility and is, thus, particularly effective in reducing VOC emissions from automobiles

.

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MethanolMethanol (CH3OH) is an alcohol fuel. As engine fuels, ethanol and methanol have similar chemical and physical characteristics. Methanol is methane with one hydrogen molecule replaced by a hydroxyl radical.

It is produced from natural gas in production plants with 60% total energy efficiency. Methanol can be made with any renewable resource containing carbon such as seaweed, waste wood and garbage.

This is a promising alternative, with a diversity of fuel applications with proven environmental, economic and consumer benefits. It is widely used today to produce the oxygenate MTBE added to cleaner burning gasoline. Cars , trucks and buses running millions of miles on methanol have proven its use as a total replacement for gasoline and diesel fuels in conventional engines. Methanol offers the greatest hope for early and broad introduction of fuel cells that will make Electric Vehicles practical within the next few years. Whether reformed to provide hydrogen for conventional fuel cells or used directly in the latest liquid fed cells, methanol will overcome the greatest remaining obstacle to commercialization, by offering the only economical way to transport and store the hydrogen needed for fuel cells. Methanol fuel cells will greatly reduce carbon dioxide emissions for vehicles and virtually eliminate smog and particulate pollution.

Bio dieselBiodiesel (mono alkyl esters) is a cleaner-burning diesel fuel made from natural, renewable sources such as vegetable oils. Just like petroleum diesel, biodiesel operates in combustion-ignition engines.

The use of biodiesel in a conventional diesel engine results in substantial reduction of unburned hydrocarbons, carbon monoxide, and particulate matter. It also decreases the solid carbon fraction of particulate matter (since the oxygen in biodiesel enables more complete combustion to CO2), eliminates the sulfate fraction (as there is no sulfur in the fuel), while the soluble, or hydrocarbon,

39

fraction stays the same or is increased. Therefore, biodiesel works well with new technologies such as catalysts (which reduces the soluble fraction of diesel particulate but not the solid carbon fraction), particulate traps, and exhaust gas recirculation (potentially longer engine life due to less carbon).

Electric FuelElectricity is unique among the alternative fuels in that mechanical power is derived directly from it, whereas the other alternative fuels release stored chemical energy through combustion to provide mechanical power.

Batteries commonly provide electricity used to power vehicles, but fuel cells are also being explored. Batteries are energy storage devices, but unlike batteries, fuel cells convert chemical energy to electricity.

A large number of various types of batteries are being tested for use in EVs. Some of the technologies being used or evaluated include lead-acid, nickel cadmium, nickel iron, nickel zinc, nickel metal hydride, sodium nickel chloride, zinc bromine, sodium sulfur, lithium, zinc air, and aluminum air.

The first benefit of using electric fuel is that you are not polluting the environment. Although, some people argue that there are some emissions that can be attributed to Evs-the emissions that are generated in the electricity production process at the power plants . The maintenance costs for EVs is less-EVs have fewer moving parts to service and replace.

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PROJECTPROJECT GIVEN - IDENTIFICATION OF “ MAJOR DRIVERS” AND THEREBY POTENTIAL ASSESSMENT OF AUTO LPG IN PATNA

OBJECTIVE - IDENTIFY THE MAJOR DRIVERS OF SUCCESS OF AUTO LPG IN PATNA BEFORE

LAUNCHING

LOCATION - PATNA

DURATION OF PROJECT – JUN TO JULY (4 WEEKS )

SAMPLE SIZE – 100 AUTO RICKSHAW & 50 CARS FROM DIFFERENT AREAS OF PATNA

Objective

Information needed

Data type

SecondaryData Primary data

Analysis

Interpretation

REPORT

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For achieve the objective of the project information was very necessary. there were two types of data.

For collecting the primary data survey was very necessary. so ,Survey done on the given format by Indian oil corporation limited (Marketing division) BSO , Patna

SURVEY FORMAT

Xpress Your Valuable Views.

We are students of management institute and on behalf of Indian Oil we are carrying out a survey on clean, environmental friendly fuels. We express our gratitude for your valuable

comments and co-operation. This is purely for our project.

1. Name : ………………………………………………… Mobile No. ……………………………………

2. What make is your Car ………………..…….. How old is your car …..…….… Years

3. Have you heard of Auto LPG Yes No

4. Which of following you think best describes Auto LPG

Economical & Environment Friendly Economical but Unsafe

Economical & Safe Cumbersome & Costly

5. How much do you travel in a month on an average ……………………. Kilo meters

6. On what basis do you chose your vehicle

Price Quality Word of Mouth

Fuel Efficiency All of them

7. Given that Auto LPG is 35-40% cheaper than petrol and a cleaner environmentally fuel

42

you would like to switch over to Auto LPG (whose kit costs Rs. 15000.00) if your per month saving is

Rs. 500/- pm Rs. 750/- pm Rs. 1000/- pm

Rs. 1500/- pm I Will never switch to Auto LPG

8. Please give your suggestion regarding Auto LPG in Patna

…………………………………………………………………………………………………………………………………………

….

...............................................................................................................................................

...............................................................................................................................................

......

In the given format of survey there is some questionnaire. I conduct survey at different places in Patna like Patna junction , Gandhi maidan , Gayaghat , Boring road , Rajapur pul and asked questions to Auto rickshaw pullar and collect primary data.

(1) HOW OLD IS YOUR AUTO ( IN YEARS) ?

A. 0 -5 YEARSB. 5 – 10 YEARS

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C. 10 – 15 YEARS

(1) HAVE YOU HEARD ABOUT AUTO LPG ?

99%

1%

YESNO

44

B55%

C22%

A23%

(2) WHICH OF THE FOLLOWING YOU THINK BEST DESCRIBES AUTO LPG ?

90%

4%6%

ECONOMICAL & FRIENDLYECONOMICAL BUT UNSAFEECONOMICAL & SAFECUMBERSOME & COSTLY

(3) HOW MUCH DO YOU TRAVEL IN A MONTH ON AN AVERAGE ( In kilometers)

45

2000 KM TO 3000 KM43%

3000 KM TO 3500 KM15%

3500 KM TO 4000 KM33%

MORE THAN 4000 KM9%

(4) AT WHAT BASIS YOU CHOOSE YOUR AUTO ?

PRICE

61%

QUALITY1%

FUEL EFFICIENCY25%

ALL13%

(5) GIVEN THAT AUTO LPG IS 35 – 40 % CHEAPER THAN PETROL AND A CLEANER ENVIRONMENTALLY FUEL YOU WOULD LIKE TO SWITCH OVER TO AUTO LPG( WHOSE KIT COSTS RS. 5000 TO RS.

46

10000) IF YOUR PER MONTHS SAVING IS

34%

8%40%

18%

RS. 500 /- PMRS. 750 /- PMRS. 1000 /- PMRS. 1500 /-PMI WILL NEVER SWITCH TO AUTO LPG

(6) SUGGESTION –

When I asked some of the auto rickshaw drivers to give their suggestion about auto LPG in Patna then they gave some suggestions which were as follows

1 Auto LPG station should be in main Patna like

A . Patna junction- which will cover the most of the areas of Patna because Patna junction is the centre point for auto. For Patna junction auto comes from

bailey road, boring road, boring canal road, Raja bazaar. Danapur, Gandhi maidan , Rajendra nagar, Agamkuan, mithapur bus stand and Hajipur.

B . Gandhi maiden

C . Bailey road

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D . Boring road chauraha

E . Near Agamkuan

(2)Easily availability

(3)Easily availability of kit

QUESTIONNAIRE PREPARED FOR SURVEY ON CARS

(1) HOW OLD IS YOUR CAR ( IN YEARS) ?

(2) HAVE YOU HEARD ABOUT AUTO LPG ?

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0-4yrs36%

8-12yrs16%

4-8yrs48%

100%

yesNo

(3) WHICH OF THE FOLLOWING YOU THINK BEST DESCRIBES AUTO LPG ?

74%

12%

8%6%

ECO & ENVIORNMENT FRIENDLYECONOMICAL BUT UNSAFEECONOMICAL & SAFECUMBERSOME & COSTLY

(4) HOW MUCH DO YOU TRAVEL IN A MONTH ON AN AVERAGE ( In kilometers)?

49

30%

48%

18%

4%

0-500 KM500-1000 KM1000-1500 KM1500+ KM

(5) AT WHAT BASIS YOU CHOOSE YOUR CAR ?

26%

12%

6%

52%

4%

PRICEQUALITYWORD OF MOUTHFUEL EFFICIENCYALL OF THEM

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(6) GIVEN THAT AUTO LPG IS 35 – 40 % CHEAPER THAN PETROL AND A CLEANER ENVIRONMENTALLY FUEL YOU WOULD LIKE TO SWITCH OVER TO AUTO LPG( WHOSE KIT COSTS RS. 5000 TO RS. 10000) IF YOUR PER MONTHS SAVING IS

50%

8%2%

40%RS. 500/-PMRS.750/-PMRS.1000/-PMRS.1500/-PMI WILL NEVER

SCOPE OF AUTO LPG IN PATNA51

Patna today is seen as a source of hope emerging at the grassroots, as individuals and organisations, including the government make efforts at creating a city with new commitments to bring in new vistas of opportunities, creating employment, adding colour, vision and value to every neighbourhood, business centres and the pathways that dot Bihar's capital city.

There is indeed some good news to begin with. The World Bank's Doing Business in India 2009 report has adjudged Bihar's capital city, Patna ahead of Mumbai and second only to New Delhi when it comes to launching a new business initiative.

In fact, Patna's rating is above Chennai, Kochi and Kolkata in the overall ranking for facilitating smooth business, says the World Bank Report.

Kargil Chauk, Patna

In short, Patna appears promising. And even though the city still has promises to keep Patna today - the capital city of Bihar- means prosperity.

As we move towards 2010, Patna, located on the banks of Ganga, appears flooded with opportunities. The city is at the threshold of an economic renaissance, which has pushed up the paying capacity of the residents. Slowly but surely, Patna is emerging as a growth centre.

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According to ASSOCHAM's study of the employment scenario in India between April and October 2009-10, Patna registered a growth of 20.52 percent in job creation. Among the Tier II cities, Patna is placed behind Vishakapatnam (115.21 per cent), Indore (60.00 per cent), Bhubaneswar (49.49 per cent), and Jaipur (28.74 per cent) and is registering major growth in job creation during April to October 2009-10 as compare to the same period in 2008-09.

The ranking assumes special significance since cities like Bhopal, Amritsar, Gwalior and Ludhiana have witnesses a decline in job creation by 26.68 per cent, 9.60 per cent, 6.27 per cent and 3.94 per cent, respectively.

Prosperity indeed is writ large on Patna roads. The rise in number of vehicles plying on Patna roads is a huge indicator to this effect.

In the last one year, there has been a growth of 39 percent in private vehicles and 67 percent rise in the commercial vehicles plying across Patna.

In 2008-09, a total of 21,594 vehicles were registered. The number shot up to 30,229 by October 2009. 3,008 passenger vehicles were registered in 2008-09, which shot up to 5,025 till October.

In fact, Patna -- where the number of vehicles in 2007 was 1.75 lakh -- today is bustling with 2.93 lakh vehicles till October 2009 -- a rise by 67 percent in just two years.

The general perception suggests that a big thrust on development has given Bihar the forward momentum, besides increasing the money volume in the market, which has resulted in a corresponding rise in the purchasing power.

Things are looking up in Patna. The last few years have seen families having late dinner at restaurants. The shopping outlets in downtown Patna are chock-a-block, and the real estate business is booming while commanding a never before price tag in the city.

This is, however, just part of the story. Patna needs to expand, as the existing city just does not have a matching infrastructure ready to accommodate everything

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that the city currently has.

Patna is struggling in terms of infrastructure strength, which is inadequate to cater to the growing population. It desperately needs more flyovers, better roads and end of water-logging to join the big league of developed cities.

Several foreign financial institutions like World Bank and Asian Development Bank have offered to help Bihar towards infrastructure development under the urban development ministry.

In fact, the existing infrastructure in terms of roads and space is so grimly inadequate that the Patna High Court recently asked the Government of Bihar to speed up the decision-making process on the proposed master plan for the State Capital.

Mona Cinema Hall, Patna While hearing a PIL on illegal apartments, the HC also suggested the Urban development Department to take steps for developing areas adjoining Patna to ease pressure on the State capital.

The good news is that the Urban Development Department has plans to develop Maner and Fatuha as satellite towns and also improves Hajipur and Sonepur in order to shift the population pressure coming to Patna urban area.

The Patna Regional Development Authority (PRDA) has charted out a plan to this effect, although the pace of its implementation has left a lot to be desired.

In fact, if the authorities including the city planners succeed in developing Patna in accordance with the requirements of time, the capital of Bihar will surely be a place to watch in the coming future.

The Patna Urban Agglomeration Area had a population of 16.98 lakhs as per the 2001 Census while the municipal corporation area of Patna had a population of

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13.66 lakh (2001 Census).

The population of the Urban Agglomeration Area is expected to be 22.50 lakhs in the year 2011 and 28.01 lakhs in the year 2021. In addition the floating population who commute from districts to the Patna Urban Agglomeration Area each day is expected to be 3.00 lakhs by 2021 against around 2.00 lakhs at present.

In the years to come the existing planned residential area of 8938 hectares would go up to 14,609.57 hectares in another decade. At present, the planned residential area in Patna is 641 hectares while for apartments it is 242 hectares.

By 2021, the face of the city will change dramatically. There are plans of expanding the residential area to 8014.70 hectares. Correspondingly, the commercial space will go up to 514.9 hectares whereas 1073.91 hectares of space is to be earmarked for community space.

In addition to this, over 3000 hectares of green land, 1709.44 hectares of internal roads and 88.74 hectares of infrastructure area are to be created.

The authorities have planned to increase the areas for clubs, cinema halls, theatres, parks and playgrounds to 990 hectares from the existing 224 hectares.

Similarly in a decade to come, efforts would be made to reduce the existing land occupied by administrative offices of the government, educational and medical institutions, religious, archaeological and historical sites and graveyards and cremation ghats -- which is currently over 691 hectares There will be 800 hectares of 30 and 20-metre wide roads.

The area for clubs, cinema halls, theatres, parks and playgrounds is to be increased from 224 to over 990 hectares. There is a proposal for 60 metre-wide roads in Patna occupying a space of over 681.98 hectares,

All this, however, is yet to happen. But, the plan surely gives an idea that a focussed development and expansion of Patna is on the cards.

Being surrounded by three rivers, Patna also has a constraint of growth on the northern side due to River Ganga, southern side due to River Punpun and eastern due to Sone.

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Moreover the topography of Patna is like a saucer due to the surrounding three rivers and thus drainage of the city poses as a major problem and pumping of water our seems to be the only solution at present. The city is also prone to flooding.

The Human Development Index (HDI) in Patna, however, needs some focussed thrust. The HDI is the more widely used means of measuring well being, which takes into account additional indicators like per capita income, along with life expectancy and literacy rate of a society.

Life expectancy in Bihar is 61 years, almost on par with the national life expectancy of 62.7 years. Patna's capita gross district domestic product of Rs 31,441. Patna also has the highest per capita saving in the state at Rs 675, highest per-capita fuel consumption and the highest per capita income at Rs 6,958.

Across the state, the city also has highest per capita spending share on health and education (in 2006-07) at Rs 674 and Rs 5,633. The literacy rate of Patna Urban Agglomeration area is 68.9%, which is higher than the literacy rate of the State i.e. 47.53%.

The state government also appears to making some concentrated efforts by increased expenditure on social services to improve the HDI (Human Development Indices). There are attempts at providing better access to basic education, health services, safe drinking water, sanitation, housing etc.

In Bihar, the total expenditure on social services in 2008 has gone up to Rs 10666 crore (35 percent salary component), which is up from 4197 crore of 2003-04.

It includes health and family welfare, water supply, sanitation, housing and urban development, education, sports, arts & culture and other social services.

In fact, in 2007-08, the total expenditure on social services was more than one third of the total expenditure and 48 percent of the total development expenditure.

These efforts may positively impact the ground situation, as Bihar has been at the lowest position among the major states in India in 1981, 1991 and 2001. The same pattern is replete in its ranking with respect to Per Capita Income.

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The spin offs of the prosperity is also visible across the board with Patna people expressing a pronounced consumer behaviour with larger disposable income.

The megatrend of consumerism is revamping Patna's economic structure, besides fuelling business growth in the city. Similarly, the retail industry here is also developing fast with improving business environment and rising income levels.

No wonder, Patna has also caught the attention of real estate developers, and a number of projects in both the segments of commercial and residential are underway.

However, the demands for space have come from sectors like banking, insurance, finance, telecom, coaching and educational institutes etc. According to an estimate, more than 10 million sq ft structure is being created to meet the demand.

Patna has also witnessed a huge influx of business organisations coming to the city, while the existing ones have been on an expansion mode thus generating hundreds of jobs in the private sector.

Advantage of cost is one big factor that makes Patna a preferred destination for business and real estate activities. At times when capital values at metros go as high as Rs 30,000 per sq ft, prices here are seemingly moderate.

In terms of retail business, although many big names are yet to set up shops in Patna but huge departmental stores like Vishal Mega Mart, Patliputra Shoppers Plaza, and Khetan Super Market have already emerged successful in drawing huge number of consumers.

Quite a few mall-cum-multiplexes are also likely to come up in a year time at Patna. These malls will have exclusive shops, showrooms and offices, besides silver screens with excellent acoustics, coffee house, and food court, with escalators and capsule lift.

From a production Market focussed on rest of the country, Patna is turning into an equally good consumption market much more focussed on selling to itself.

Clearly, what's happening in Patna is by far the most important development in

57

Bihar. The policy makers want to develop Patna for rest of the state to follow. Patna has begun its journey. SWOT Analysis

Strength: Advantage of large labour force. Well developed service sector. In fact, the Economy is witnessing a shift towards services, much before industrialisation, mostly driven by a buoyant urban economy

Weakness: Unavailability of land

Opportunity: Huge potential for tourism, as the city has a large variety of historical monuments (Like Golghar) from Maurya to Gupta age and down to the Colonial British Rule. It is the gateway to the Buddhist & Jain pilgrim centres of Vaishali, Rajgir, Nalanda, Bodhgaya and Pawapuri.

Patna can also develop as a major education centre. New centres of Indian Institute of Technology and National Institute of Fashion Technology are already here, besides an extension centre of BIT Mesra and a good business school, Chandragupta Institute of Management. Threat: Poor infrastructure, poor HDI in addition to a negative sex ratio 873 female against 1000 males. The Biggest Brand: There are many in Patna. But all debates over being the biggest brand in Patna stands settled with Hotel Maurya, which stands heads and shoulders above others.

Set up in 1978, Hotel Maurya, Patna, is a pioneering project of Bihar Hotels Limited (BHL) that has generated foreign exchange for the state of over Rs. 34 million. Located on a two and a half acre plot in the prime commercial area of Patna, the Maurya hasl almost everything -- food outlets, four conference, banquet facilities, swimming pool, gym -- to make it a complete experience.

MAJOR DRIVERS

1.POLLUTION

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As we see that Patna is emerging faster with the presence of good governance which is helping in better investment form the investors which is ultimately increasing the population as well as income per capita of the people living in Patna as there is various income groups. People from higher income group who can afford four wheelers are buying at a rapid speed. Also for mass transportation number of auto rickshawas is also increasing very fast .But this rapid sale of automobiles is contributing in the air/noise pollutionThis is the main reason for that we should think for the alternate option as we have limited source of petrol and diesel whose price is going on day by day. But our main concern is to minimize the environmental pollution of Patna being polluted by these automobiles. Written below are the details of pollutants and their effect on human being.

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Effects on Human Health

The vehicular pollutants have damaging effects on both human health

and ecology. The human health effects of air pollution vary in the degree of severity, covering a range of minor effects to serious illness, as well as premature death in certain cases. These pollutants are believed to directly affect the respiratory and cardiovascular systems. In particular, high levels of Sulphur dioxide and Suspended Particulate Matter are associated with increased mortality, morbidity and impaired pulmonary function.

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Pollutant Effect on Human Health

Carbon Monoxide

Affects the cardio vascular system, exacerbating cardiovascular disease symptoms, particularly angina; may also particularly affect fetuses, sick, anemic and young children, affects nervous system impairing physical coordination, vision and judgments, creating nausea and headaches, reducing productivity and increasing personal discomfort.

Nitrogen Oxides

Increased susceptibility to infections, pulmonary diseases, impairment of lung function and eye, nose and throat irritations.

Sulphur Dioxide

Affect lung function adversely.

Particulate Matter and Respirable Particulate Matter (SPM and RPM)

Fine particulate matter may be toxic in itself or may carry toxic (including carcinogenic) trace substance, and can alter the immune system. Fine particulates penetrate deep into the respiratory system irritating lung tissue and causing long-term disorders.

Lead Impairs liver and kidney, causes brain damage in children resulting in lower I.Q., hyperactivity and reduced ability to concentrate.

Benzene Both toxic and carcinogenic. Excessive incidence of

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