Savasani Meet
Savasani Meet
Savasani Meet
APPROACH
Submitted to
Gujarat University for the degree of
Master in Commerce (Valuation)
Subject: Valuation
By
MEET ASHOKBHAI SAVASANI
APPROACH
Submitted to
Gujarat University for the degree of
Master in Commerce (Valuation)
Subject: Valuation
By
MEET ASHOKBHAI SAVASANI
CERTIFICATE
Place: Ahmedabad.
I DE
CHAP ER IN ROD C ION
1.1 THE MODERN OIL INDUSTRY ........................................................................................................ 1
1.2 HISTORY OF OIL AND GAS INDUSTRY FROM 34 AD TO 201 . ..................................................... 1
1.2.1 HISTORY OF OIL AND GAS: FIRST DISCOVERIES ..................................................................... 1
1.2.2 THE FIRST MODERN WELLS .................................................................................................... 2
1.2.3 BIG OIL.................................................................................................................................... 2
1.2.4 THE MODERN ERA .................................................................................................................. 3
1.3 HISTORY OF PETROLEUM INDUSTRY ............................................................................................ 4
1.4 PRODUCT PROFILE ........................................................................................................................
CHAP ER AREA OF IN ERES
2.1 GROWTH AND EVOLUTION OF PETROLEUM INDUSTRY IN INDIA. ...............................................
2.2 DEMAND DETERMINATION OF THE INDUSTRY........................................................................... 11
2.3 DEMAND DETERMINATION FACTORS. ........................................................................................ 12
2.4 MARKETING & DISTRIBUTION OF PETROLEUM PRODUCTS. ...................................................... 14
2.5 RETAIL OUTLETS IN INDIA. .......................................................................................................... 14
2. KEY ISSUES AND CURRENT TRENDS ............................................................................................ 15
2. .1 ISSUES IN PETROLEUM INDUSTRIES..................................................................................... 15
2. .2 PROBLEMS FACED BY THE INDIA PETROCHEMICAL INDUSTRY ........................................... 15
2. CURRENT TRENDS IN PETROLEUM INDUSTRY ............................................................................ 1
CHAP ER HIS OR AND LI ERA RE RE IE
3.1 EARLY HISTORY............................................................................................................................ 1
3.2 MODERN HISTORY ...................................................................................................................... 20
3.3 INDIA HAS EMERGED AS REFINARY HUB .................................................................................... 25
3.4 PLAYERS IN THE INDUSTRY ......................................................................................................... 25
3.5 DISTRIBUTION CHANNEL OF THE INDUSTRY............................................................................... 2
3. USING TECHNOLOGY TO BOOST PRODUCTIVITY ....................................................................... 30
3. .1 PESTEL ANALYSIS .................................................................................................................. 30
CHAP ER RESEARCH ME HODOLOG
4.1 PROPERTY CLASSIFICATION AND VALUATION APPROACHES ..................................................... 33
4.2 VALUATION OF PETROL PUMP.................................................................................................... 34
4.2.1 GENERAL DESCRIPTION OF PETROL PUMP BUSINESS ENVIRONMENT ............................... 34
4.3 FOUR TYPES OF PETROL PUMP OWNERSHIP STRUCTURES IN THIS INDUSTRY .......................... 35
4.3.1 GOVERNMENT CLEARANCE FOR PETROL PUMP.................................................................. 3
4.3.2 LEGAL FACTORS WHICH HAVE A BEARING ON PETROL PUMPS SITES ARE ......................... 3
. . THE GENERAL TERMS AND CONDITIONS UNDER WHICH THE LAND FOR PETROL PUMPS
HAVE BEEN ALLOTTED ARE ...........................................................................................................
. FACTORS AFFECTING THE SECURITY OFFERED BY PETROL PUMP ..............................................
. .1 DEMAND OF PETROL / DIESEL FROM A GIVEN RETAIL OUTLET. THIS DEMAND WOULD
DEPEND UPON FACTORS LIKE .......................................................................................................
. . COMPETITION ......................................................................................................................
. . ALTERNATIVE FUELS .............................................................................................................
. . SUPPLY SIDE .........................................................................................................................
. . NEWER TRENDS....................................................................................................................
. . THE IMPECT OF ALL THESE FACTORS ON THE SECURITY ASPECTS OF PETROL PUMP
BUSINESS CAN BE SUMMARISED AS FOLLOW ..............................................................................
. METHODOLOGY: .........................................................................................................................
. .1 LIFE CYCLE OF THE PETROL PUMP ....................................................................................... 1
. . SUBJECT MATTER OF VALUATION........................................................................................ 1
. . ESTIMATION OF INCOME ..................................................................................................... 1
. . SECURITY AND RATE OF INTEREST .......................................................................................
. . ANALYSIS OF SALE ................................................................................................................
. . TERMINABLE INCOME ..........................................................................................................
. . ANALYSIS OF DATA ...............................................................................................................
CHAP ER DA A PRESEN A ION DA A ANAL SIS
OVERVIEW OF PETROL PUMP ...........................................................................................................
DATA ANALYSIS .................................................................................................................................
YEAR: 01 ........................................................................................................................................
REPORT: 01 ....................................................................................................................................
Year 01 ..........................................................................................................................................
REPORT: 01 ...................................................................................................................................
CHAP ER CONCL SION
CHAP ER PHO OGRAPH OF PE ROL P MP
CHAPTER 1 INTRODUCTION
The e f he f de ea e g e, a he beg g f he 18 h
ce , he a ded he a f a f a ag a a a d a ec .
S ea e g e c d be e ed b e he d c a,b c a c
beca e he efe ed f e a d e ab ed a eg h he ca e f
d a a .
A ha f- fc a d ced f e a ch e e g a he a e a f
d a d a chea e d ce a d, de e b , ea e d b e.
C a -f ed ea c e d a a ca ed ced he ea dc f a d
a a , h e ea h a e ed cea . Mach e e ed b c a
e ab ed b ea h gh d c h e ed c g h ca .
W h he da f he 20 h ce ,e e a c ce a d e
ech g e ed a he e e g ce h f f c a .I ee g ,
a h gh e ee e a ed e, ad e ce e he U ed
Sae ee e a bb g f a ea a a d ed ce
he de e e ca ed b b gc a.
T da , a d ga a e a a, - d a d ,b he e,
he a d h d d he d beg ? Off h e Tech g e e he
h f a d ga , f he f d c e e e e -da b e e .
A A I EC F E B I C EA ACH. 1
F g he e cce f d a ,Y g e e e ed f he hc a
a d a ab e d a be f d c d g a ea f f e e .
He a e ed he e a d a aff a ,a d ed f c a , 1850, a d
a e ha ea f ed a a e h h ge g Ed a d W a B e .
The a e f ed he f c e ca ef e a d - he
d, a fac g a d a aff a f ca ed c a .
Y g a he ce a g d c e e ab c a he 19 h
ce . I 1846, Ca ad a ge g Ab aha P e Ge e ef ed a d
f c a, ha e a d b e ha a chea e a d b ed e c ea
ha he . He d bbed h d e e e a df ded he Ke e e
Ga gh C a 1850, g he gh he ee f Ha fa a d a e
he US.
F he e a d c e e , e b e e e e c ea ed, h he c a
d a ee g c ea e he de e ed b Y g a d Ge e .
P h e g ee Ig ac a e c ed Ge e eh d e ea
d e e ea d e e 1852, e g he f c e
B b a, P a d 1854.
The a e 18 h ce a d he ea 19 h ce a ed he c ea f a
c a e ha d a e he a d ga d da .
J h D. R c efe e f ded he S a da d O C a 1865, bec g he
d f ba . S a da d O c beca e he f ab e Oh ,
c g ab 90% f A e ca ef g ca ac a d a be f
ga he g e a d e e .E M b , e f S a da d cce
af e d ed 1911, he d h a ge c a b e e e
da .
I R a, he R h ch d fa c ed a e f B h ade
Ma c Sa e e a d he ea a d each e e ea
c e . Sa e f e e , he M e a ed af e a ea a
A A I EC F E B I C EA ACH. 2
beca e he f a e a h gh he S e Ca a c ec g he
Med e a ea Sea he Red Sea.
The d c e f Ma ed S e a , I a b W a K D A c ed he
c a f he A g -Pe a O C a (APOC) 1907. The B h
G e e cha ed 51% f he c a de he Na h d g
W d Wa I 1914. I 1954, APOC beca e B h Pe e , da
a BP, h ch c e he h a ge a d ga c a he d.
I he a e 20 h ce , cha ge he a e ed f e ce f
ge e a -c g a ea ch a he US a d E e - d c g
c e .
I a , I a , K a , Ve e e a a d Sa d A ab a f ed he O ga a f he
Pe e E gC e (OPEC) 1960 e e a a
he Se e S e c d gE M b a he e E a dM b
She a d BP, h ch e a ed f -c gc e .
O - d c gc e ffe ed d g h g , h OPEC gg g
a a h gh ce h gh dec ea g d c . The d f
he S e U ca a be a b ed a a f f e ce a a
d ce .
The g a ed ea , h ce g ad a ec e g 1986, b a
a a ed 2014 a d c e ha e effec g ba
ce .
The a d ga d h g da de ec e f
e e ab e ce f e e g , a be a e a e a e ha e e d e
de e .
A A I EC F E B I C EA ACH. 3
1.3 HISTORY OF PETROLEUM INDUSTRY
The a d ga ec a g he e gh c e d e I daa d a a
a e f e c g dec a g f a he he a ec f
he ec .
I d a ec cg h c e e a ed e e g de a d; he ef e he
eed f a d ga ec ed g e, he eb a g he ec e
c d c ef e e .
The G e e f I d a ha ad ed e e a ce f f he c ea g
de a d. The g e e ha a ed 100 e ce F e g D ec I e e
(FDI) a eg e f he ec , c d g a a ga , e e
d c , a d ef e e , a g he . T da , a ac b h d e c a d
f eg e e , a a e ed b he e e ce f Re a ce I d e L d (RIL)
a d Ca I d a.
The de e e f he I d a e e d bega a e e. I
a ed a he hea e a f I d a e ec a he ace ca ed
D gb he a e f A a . U he 1970 , he d c f e e a d
he e a f e ca f e ac f e e ee a
e c ed he hea e a e I d a.
H e e,a a ad a ce e he I d a e e d ca e
h he a g fI d a P c Re 1956, h ch e ha ed
f c he g ha d f d e I d a. A he a c de
a he d c e f B ba H gh, h ch cha ged he ce a f he I d a
e e d d a ca . The I d a e e d a ed
c e e b he g e e , a d he a age e c f he e e
d a da e a ed ac a e e h he g e e . The
e e d ha he g f ca e a cha g g he I d a
ec f a ag a a ec a d a ec .
A A I EC F E B I C EA ACH. 4
A g h be a a a d a a , he e a ec fI dag e .
A , he de a d f e e d c c ea ed a a a a a e f ab
5.5%. The de a d f e e a d e e d c c e
g , a d he e g ea e a f e e he ec a d ga
a ab e e h e ee g he c ea g de a d f he e e
d c .
The e e d I da a c a fa ab e f f e g e e
beca e he d e f he fa e g g eg e , a d ha h
a agge g g h ae fa d 13% he ece a .A a f he
e e d g h ae he I d a e e d da , a b a
ech g f e a a a da d , ea a a ab f fa c ea e
chea a e , h gh de a d f e e d c , a d c ea ed e d g
hab f he dd e-c a e e. A he e fac a e e e he
I da e e d a a ac e f f eg e .
A he e a ea h he I d a e e d ag d
f e e ha he f e f he e e d I da
e g ea e a f de e e . The fa ec cg h fI da
a d he a de e e a ac e a g ace e e I da h
e he f e be a d a a e g ba he e f
e e d c .
I he d , e had c e e , a e Pe ech S c e a d Pe e
Fede a f I d a (Pe Fed).
The Pe ech S c e a c ce a ed 1993 a d be a I e a a
O & Ga C fe e ce & E h b , Pe ech a a ched 1995. S
beca e a g f ca e e he ca e da f g ba a d ga d ;
d e a g f a a d edge ab a e- f- he a ech ge a d
a e de e e he a d ga d . Pe ech S c e ded a
f f a a a d e a a e e he & ga d e cha ge
A A I EC F E B I C EA ACH. 5
e a d ha e he edge, e e e a d e e e ce a d e e a ea
f c e a a d ech g a fe . Pe ech b ec e ee e
e ed a d acade a, de e e , ech ca e ga d d
a ae e .
The Pe e Fede a f I d a (Pe Fed) a eg e ed a a c e
2002 af e he ee f e e c a e a he d
beca e f de eg a ed a d a e ec a e a a a
c a e c ea ed he e e ce he I d a. S beca e a ed ce
f I da e e ec ec he e e f e be a d ed a
de a ge f ac e h gh a e f- eg a e e a d ed he
ee f he e e d e h he a a c e . O e he ea
beca e a g e face h G e e , eg a e age c e a d
eg a b de .
S ce he ce , b h Pe ech S c e a d Pe Fed e e f c g
e effec e , ee g he a a d b ec e f h ch he e e e ab hed
he c g a be g f ee f I da e e d
h gh he c fede a ed c e. I a e f e e g be ee he
e e , a dec ded ha e e ge b e b a a ga a g
Pe Fed h Pe ech S c e a d c ea e e af a d e ce f
I da e e d he d.
A h ca a ce e a ade 7 h Dece be , 2016 ab he
a a ga a f a e e he ec a d he a a ga a ed b d
a e a ed a Fede a f I d a Pe e I d (FIPI).
The a a ga a ed Fede a ha b gh he f ef a e g ed ce
h ch d a e I da & ga ec e e he gh f fe a
e ce e ce.
A a c ec e e f a e ec a d b c ec ef e e e
he ece a , I d a bec e b 2012 a A a a ge ef ed
d c e e, a g S ga e. I d a a e fA a a ge
ef ed d c e e f he a c a ed f e.
I da dde bec e a g ba e e d c g ce e beca e f
ha g c ea g he de h f d c f a d e g he g cha
e ec a c ea a f e a d f h gh-e d d a d c.I a ha e
fa - each g ca f eg a d c a e .
The b e f I d a a ge ca e e e ed ef g ec a he
c ea e f a e f a ba c h f he de g f g ba ef g h ch g g
ec e c ea g d c h b A a a d he M dd e Ea
c e e a ef ed d c de a d.
A A I EC F E B I C EA ACH. 6
1.4 PRODUCT PROFILE
Th ec de a b ef de c f he ech g a d d c
ce . A de a d g f he e e c ca a he de a d
d c e.
C de a d e f h d ca b che ca c d c g
gh f a f ca b a d e f h d ge , b h f h ch a e f e ;
ge e a a ca e a a e f a h , ge , e a a d
ge .
Petrol:-
Pe ed f e e a c b e g e , a eh c a . I ea
ea a e f ce a d he egg ha c ee d a ea ed.
Liquefied petroleum gas (LPG):-
LPG ac b a f a e a d b a e. I hea e ha a , a d
ef e de e e. I ed a a h eh d c g f e , eh c a f e
a d ef ge a ; 4 eh c e a e e a ed be e ed b LPG he
d.
Kerosene:-
Ke e e a a a aff , ed a a a a dc gf e
I d a a d he c e , a d a a ace hea gf e d a
c e .
Jet fuel:-
I ed e a e , c e a e e e.
Naphtha:-
Na h ha ed a e add e f h gh- c a e e ,a d a e
e c a c a d ea, a ge fe e.
Lubricating oil:-
I c f g ea e a d c ed b ca e g a
a b e , d , a a e g e a d ca age a d a ee g e .
Petroleum coke:-
I ed a f e , b a ed a ed ce ba e e a d
e ec de .
High-speed diesel oil:-
I ed e g e g a 750 e e e( ) e. I
ed d e e - e ed eh c e .
A A I EC F E B I C EA ACH.
Light diesel:-
I ed he d e e e g e ga e eed a ga
a d ge e a e .
Furnace oil:-
I ade b d g e d a f e f ef g h dd e d ae ch
a de e .I ed b e , b e , f ace , hea e , a fe e
feed c .
A A I EC F E B I C EA ACH.
CHAPTER - 2 AREA OF INTEREST
The e e d c de he g ba ce e f e ac ,
e a , ef g, a g( fe b e e a d a e ), a d
a e g e e d c . The a ge e d c f he d ae
ga e( e )a df e . Pe e ( ) a he a ae a f a
che ca d c , c d g e , ha ace ca , e c de , fe e ,
a d a c .
The g f he I d a & ga d ca be aced bac he a e 19 h
ce , he a f c a D gb A a 1889.I e f he
g f ca ce f he ga & ec f ea ec cg h, he
G e e f I daa ced 1954 ha e e d be he c e
ec d .
1954, e e e a & d c ac a c ed b he
g e e - ed Na a O C a e (NOC ), a e O I daP ae
L d (OIL) a d O & Na a Ga C a (ONGC).I d a ef g ca ac
ha e ha eb ed he a 13 ea . Re a ce I d he f ef e
d Ja aga 1999, I d a ha a a ed ca ac fa d 193.5
a A , 2011.
The g h e c e h ef g ca ac e e ec ed ch 255
a b 2012-13 a d 302 a b 2017-18, h a e f ec
a ced b b h he a e a d b c ec . T da , a e ec
acc f 76.5 a (a d 39.5 e ce ) a d b c ec
c a e acc f c e 117 a (a d 60.5 e ce ).
The e ha bee a hea h g h I da e e ef g ca ac he
a f e ea , a de c bed b he g e ab e be :-
Total consumption
A A I EC F E B I C EA ACH.
113.2
120.7
128.9
133.6
138.2
A A I EC F E B I C EA ACH. 10
Import dependence (%)
72.8
73.2
75.0
76.7
77.2
Self-sufficienc (%)
27.2
27.0
25.0
23.3
22.8
The ca ac a f I d a ef e f he a fe ea de c bed
he ab e. I d a ef e ha e a e a ed a h ghe ea g ae
ca ac a c a ed he eg a /g ba ee g eff c e c
ea .
B , f I d a ef g d g g, a he d e c c de
d c ab e a a d 30 af he a fe ea .
Ge e a , GDP g h ae a d e e d c c ae ed.
B , ca e, fac e a a ab f be e ad , e f e eff c e
eh c e , e e a ba a de a d c ea ed
a a ab f a a ga f d a ec c b ed e de a e
g h ece e . I d a ef e e a e c c g h ghe G Ref g
Ma g c a ed eg a be ch a a c ea g f c e e e
ef g ea .
If a he a ed ec a e a e, I d a ha e a e ab e
e e d c fa d 100 a b 2012 a d 140 .
Pe e d he c ha de g e a a f a he
a e e a ea . The c e e e f e e d c .
G ba a f I d a ec a g h h gh e a a ce h ch
a e a a - h gh he b ec ha d ced e e e eg
eff c e c a d h f f de a d f d a a ga (LNG).
A A I EC F E B I C EA ACH. 11
F he , e e ad f a c e a d be e eh c e ha had a
be g effec he de a d f ad a a f e .L de a d
a f e e HSD a d MS a d e fac ee a fc ga
d b e .e. CNG.
A A I EC F E B I C EA ACH. 12
I d a e ec ed be e f he a ge c b -OECD e e
c g h g ba . O e ha US$ 87.37 b
2017-18 f US$ 70.72 b 2016-17. I d a e a ed a he h d
a ge c e f he d 2017 hc f 4.69 b d f
2017, c a ed 4.56 b d 2016.
I d a a he f h- a ge L ef ed Na a Ga (LNG) e 2017 af e
Ja a , S h K ea a d Ch a. LNG c ea ed 26.11 bc 2017-
18 f 24.48 bc 2016-17.
Ga e e fa c e he c d a 16,226 a he beg g
f Feb a 2019.
I d a d e c c de d c J 2019 2,769 h a d e
(TMT). A f 2017, he c had 600 e c e (MMT) f e
e e e .
I FY19, a c de e e a ed a US$ 111.96 b a c a ed
US$ 87.70 b FY18. I FY19, c de c ea ed 4.53 b d
f 4.41 b d FY18.
P d c f e e d c b f ac a ge 4,931.22 FY19
f 4,808.00 FY18 a d eached 2369 TMT FY20 ( Se e be
2019).
Investments
Acc d g da a e ea ed b he De a e f P fI d a d
I e a T ade P c (DPIIT), he e e a d a a ga ec a ac ed
FDI h US$ 7.018 b be ee A 2000 a d Ma ch 2019.
F gae e f he a e e a d de e e he a d
ga ec :
E M b a d ONGC g ed a Me a d f U de a d g (M U)
f ff h e b c .
O a d Na a Ga C a (ONGC) ha a ed US$ 300
de he E e a C e ca B g e.
I Dece be 2019, INDMAX ef g ech g ed b I d a O
C a L ed' (IOCL' ) ha bee ce ed Naf a I d a
S b e (NIS) f Se b a.
I N e be 2019, e -g ade d e e ab e f e e e e
a ched.
MOU g ed be ee NSIC & ARAMCO A a f de e e O &
Ga Sec .
F eg e ha e e e ec h US$
300 b I d a, a he c c e a ce b
10 e ce b 2022, acc d g M Dha e d a P adha , M e f
Pe e a d Na a Ga , G e e f I d a.
A A I EC F E B I C EA ACH. 13
O a d Na a Ga C a (ONGC) g g e R 17,615
c e (US$ 2.73 b ) d g a d ga e 2018-19.
A f Ma ch 2019, B fed g g ac e Re a ce Ga
Ta a I fa c e, a Ea We P e e (EWPL)
f R 13,000 c e (US$ 1.80 b ).
The b c ec a e gc a e (OMC ) h ch c de H d a
Pe e C a L d. (HPCL), I d a O C a L d. (IOCL) a d
Bha a Pe e C a L d. (BPCL) a e a e b e f he
a e ga dd b f e e d c I d a.
W h he e g f e a ec f he a e a e , She , E a a d
Re a ce I d e L d. (RIL) ha e a e e ed he e a a e g e a ed
e e d c .
The a e g a d d b fa c e he e e ec c de
ef ed e e ga (LPG) d b h , e /d e e a , b ca
a d g ea e e
IOCL he a e eade e f a e ga dd b f e e
d c .
A A I EC F E B I C EA ACH. 14
g e e .D g he J e 12 a e , he h ee a ee ge he had
ed a e e f .R 40,536 c e a he d e f g e e dd
a e.
The c a e ec g f he de a d f P ed a a ga c e
f d e ca dc e ca c e ec . L a b d ed LPG
c de e ec ed be a b f P ed a a ga b e .
C e gh c e f a d ge a P ed a a ga c ec a
ae d be ec ca c a ed LPG c de . The gc f
P ed a a ga d be ab 10 e ce e ha he c f LPG. P ed
a a ga afe a d e ec -f e d f e f he e .
A a e gc a e e ad a ce f cef dec ea e he
d b cha e f LPG c de , he e fe h ce a e
gf c e .
C e , c a e I d a a e g g h gh a gh a f a a g
e ag a e ab e a e f c de ce a d c ea g
d b c .O c a e a eed be e a ed f ac e c g
ce a f he c gf e.
He ce, he ed a e eed ha e a c e e ea e b f ae
a d e f e fec de a d f eca . I eg a f d ffe e e a d
d ffe e da a de gec e e a d f a he
c a a age e h f ga gf da f effec e dec
a g.
The g ba ec a d a c a d e e -g g e e f he h gh
c f e e g . Th f g g he de a d f e che ca . The
gg h de a d bac ed b a ff c e he c
c ed .O ea g ae f a e che ca d c eg e ae
e h gh e e .
A A I EC F E B I C EA ACH. 15
A c a f e e a S a Sca e U
Pa c a e be ec c ed a d he e g hab be d c aged
I da e e ad a age feed c , he c ha be b gh
d
The d h d ha e acce he a a e e f fa c e
O e f he b g e he d ff c ed c g he ad a ce ce, h ch
cceed he a e he f e h . S e d ca ae fc e
a a ab e h he f e ce e a g he e cha ge . S e c a e
hedge he ag c de ce b d g a e ad g. The f a d ce
a a he a ce a d ca ac a a e he de f
a a c a d c a a ba ed ce.
Pe e ha e be he fe bef e ce e e d c e ed,
a ed a he c e f he de d a ec . Wh e he d
g, b ec e e g f ca e e :-
I d c da (24 e ge a d ac ce 1997)
G ba d a e a e g c ea ed e e de a d
T gh e f ec ca e ac ab e
P ca ab a d e
H gh e -ba e ce ha acce e a e de e e fa e a ee e ge
Safe a d he eed ec e h e e e
S eed e ed e ab h a e e ce e a e
Need ead fa c e a gc e
The e e a e ca g c a e cha ge he a he d
b e .F he c ea hc e he a e e e
ech g ,f a e e ed f c afe a d he e e e
e ga f a e a e f e , he e f a e e ha g he d .H
he a age he e cha ge a f e ce h he e he ea e a e
h d g a dh he h e he c e a d e g ee h a a a e
h a f a .
The cha e ge a d ga c a e face a e ha g a g f ca ac
h he e he ea e a e h d g a d ha d f ace he
de he e ee . The e a e a e ce a c a e
h ec ha e a ea e a e h d g . M e a d e he e c a e ae
a ag g he e h d g f a e e e- de e ec e, g he
fac e ea he a f he b e . The a e ea g ha fac e a d
A A I EC F E B I C EA ACH. 16
f h g ca be a a eg c f ach e g he ga a b e
g a . Tha f c ha e ea ca f he ace.
Pe e c de a e e -ba ed d c , ch a ga e, , d e e
f e , e e e, ef ed c ea e , a d e . O ga a ed
ea (e g a d e ac g) a d d ea ac e ( ef ga d
a e g) f he e e e d c aea g e f he f ab e
c a e he d.
Whe he he a e ed ea d ea ac e , he he he
ae b cc a a e- ed c a e , a e he d
e a e h he c e f g f ca e a d a e d ha a e
ha g he g- e f .
O c a e b cc a a d aea d - a e- ed e e e
a e faced h c ea g de a d f e e d c d e g ba
d a e a .
O he e ha d, ab ge he c e a e ( d ced f
de g d h d ca b e e b ea f d c e ) ha e
ed c a e e e e e hea ech g a d
e e . O he he , he e f ha e c ea ed e e d c g
a , c d g a d , ha e , a d e a hea c de , e f
h ch e e add a ce g d ce a f c a c de.
T ead he f e g c ech g ,e e ,a d ce e
f aee e g - e e ea h de g ed ead
fa c e a gc e de f he e e d e a
hea h . I e ca e , f ha e e ed e ge ac de
e a d e ce f h gh ech ca e a a d ad a ced d c .
.
O he cha ge he e e g ce e, a c a c ea g ce f b h
a d ga , a e g e ea c a e a e a b ade e f he
b e . The a e a f g he e e h gh e e a e a e
e eg ce , c d g a, d, b a , ge he a e e g , a d f e
ce ech g .
The ea a ha a e a e f e a d e e ab e e e g ech ge
a a c ea g a e a a b dge be ee he c e f c
h d ca b a d he c ea , chea e f h d ge ha ed a
c a e e hea he e a ea .
R ad Ahead
E e g de a d f I d a a c a ed g fa e ha e e g de a d f a
a ec e , he bac f c b ec cg h. I d a
A A I EC F E B I C EA ACH. 1
e e g de a d e ec ed d b e 1,516 M b 2035 f 753.7 M
2017. M e e , he c ha e g ba a e eg c
ec ed c ea e b 2-f d b 2035.
C de c e ec ed g a a CAGR f 3.60 e ce 500
e b 2040 f 221.76 e 2017.^
Na a Ga c f eca ed c ea e a a CAGR f 4.31 e ce
143.08 e b 2040 f 54.20 e 2017.^
D e e de a d I d a e ec ed d b e 163 e (MT) b
2029-30.
A A I EC F E B I C EA ACH. 1
CHAPTER - 3. HISTORY AND LITERATURE REVIEW
Acc d g He d , e ha f h a d ea ag a a a ha
a e ed he c c f he a a d e f Bab , g ea
a e f eef d he ba f he e I , e f he b a e
f he E h a e , a d h fac c f ed b D d Sc . He d
e ed ch g Zac h (I a a d , G eece). A , He d
de c bed a e f b e a d ea A de cca Ce a.
I Ch a, e e a ed e ha 2000 ea ag . I I Ch g, e f he
ea e Ch e e g c e he e f a ae h ef g a
f d c e ed, e ac ed, a d ed Ch a he f ce BC. I
add , he Ch e e e e he f e e e a f e a ea a he
f h ce BC.
The f ee f Baghdad e e a ed h a , de ed f e e ha
beca e acce b e f a a fed he eg . I he 9 h ce , fed
eee ed he a ea a d de Ba , A e ba a . The e f e d ee
de c bed b he A ab ge g a he Ab a -Ha a 'A a -Ma ' d he 10 h
ce , a d b Ma c P he 13 h ce , h de c bed he f
h e e a h d ed f h ad . The d a f e e a
de c bed de a b Pe a che ch a M ha ad b Za a a R
(Rha e ) he 9 h ce . The e a d c f che ca ch a
e e e he a e b c (a -a bi ), h ch a a ed f e e e a .
A ab a d Pe a che a d ed c de de d ce
fa ab e d c f a e . Th gh I a c S a , d a
beca e a a ab e We e E e b he 12 h ce . I ha a bee
e e R a a ce he 13 h ce , be g ec ded a c .
A A I EC F E B I C EA ACH. 1
The ea e e f e e he A e ca cc S Wa e
Ra e gh' acc f he T dad P ch La e 1595; h e h - e e ea
a e , he acc fa f a F a c ca , J e h de a R che d'A , he
g f Ne Y a b hed Gab e Saga d' Hi i e d Ca ada.
AF hb S ede, c e a d de f Ca L ae , Pe e Ka ,
h Ta e i N h A e ica b hed f 1753 h ed a a
he g f Pe a a.
I 1710 1711 ( ce a ) he R a -b S h c a a d G ee
eache E d'E (a e ed a E d'E ) d c e ed a ha a
Va -de-T a e , (Ne ch e ). He e ab hed a b e e de a P e a he e
1719 ha e a ed 1986.
I 1745 de he E e E abe h f R a he f e a d ef e
eeb U h a b F d P ad . Th gh he ce fd a f
he " c " ( e e ) he ece ed a e e e- e b a ce, h ch a
ed a b R a ch che a d a e e ( h gh h eh d
e ed ca d e ).
O fed Ca f a, 1938.
A A I EC F E B I C EA ACH. 20
The de h f e e bega he 19 h ce h he ef g f
a aff f c de . The Sc h che Ja e Y g 1847 ced a
a a e e ee age he R dd g c e a A f e , De b h e f
h ch he d ed a gh h ab e f ea a , a he a e e
ba ga hc e ab e f b ca g ach e . The e ee
cce f , b he f f he c a e bega fa
(e e a be g e ha ed 1851).
Y g, c g ha he a d gf he a d e f f he c a
e, he ed ha eh g a ed f he ac f hea he c a
ea a d f h h gh ha gh be d ced a f c a .
F g h dea, he ed a e e e a de e a cceeded,
b d g ca e c a a a hea , a f d e e b g e e , h ch he
ea ed he a e a a he ee ga e a d c .Y gf d
ha b d a he c d b a a be f ef d f , e f
h ch he a ed " a aff e " beca e a e ea e c gea ed a
b a ce e e b g a aff a .
The d c f he e a d d a aff a f c a f ed he b ec
fh a e da ed 17 Oc be 1850. I 1850 Y g & Me d a d Ed a d
W a B e e e ed a e h de he e f E.W. B e & C . a
Ba hga e We L h a a d E. Me d & C . a G a g ; he a
Ba hga e e e c e ed 1851 a d beca e he f c e ca -
a d ef e he d, g e ac ed f ca ed
ba e, ha e, a d b c a a fac e a h ha a d b ca g
; a aff f f e ea d d a aff ee d 1856.
A A I EC F E B I C EA ACH. 21
Sha e b g ea B b , 3 f a a f 19 We L h a
Ab aha P e Ge e , a Ca ad a ge g de e ed a ce ef e a
df e f c a,b e a d ha e. H e d c e , h ch he a ed
e e e, b ed e c ea a d a e e e e ha c e g
d c , ch a ha e . I 1850, Ge e c ea ed he Ke e e Ga gh
C a a d bega a g gh g he ee Ha fa a d he c e .
B 1854, he had e a ded he U ed S a e he e he c ea ed he N h
A e ca Ke e e Ga L gh C a a L g I a d, Ne Y . De a d
ge he e h c a ' ca ac d ce beca e a b e , b he
d c e f e e ,f h ch e e e c d be e ea d ced,
ed he be .
I 1846, ha ec de he f de e he d a d ed
he S h Ca ca eg fR a E e, he Ab he Pe a
h-ea f Ba ( e e e B b -He ba ), b R a Ma A e ee
ba ed da a f R a ce N. V b .
Ig ac a e c ed Ge e ' eh d de e a ea f ef g
e e ef he e ead a a ab e " c " (" e - e ") ee ,
1852, a d he f c e a b B b a, ea K ce a
E ea Ga c a (P a d) 1854. The e d c e e a d ead a d
he d, a d Mee eff b he f de R a ef e he a e
f e d a Ba 1861. A ha e Ba d ced ab 90% f he d'
.
The e f ha c ed he f c e ca e a d ff c e
a e . The f g a da f ha Va (2018). Ed
D a e' 1859 e ea T e, Pe a a, d c ed ef be ,
a c de ed he f de e . D a e' e bab g ed
beca e a d ed, d g; beca e ed a ea e g e; beca e he e
a ac a a c a ed h ; a d beca e ched ff a a b .
H e e , he f e e e d ed a he e he d, h ch d ced ,
a d ed 1857 a de h f 280 fee b he A e ca Me ac C a
La B ea (S a h f P ch ) hea T dad he Ca bbea .
Add a , he e a c de ab e ac bef e D a e a a f he
d he d-19 h ce .Ag d ec ed b Ma A e e e f he
Ba C fM g E g ee ha d-d ed a e he Ba eg
1846. The e e e e g e-d ed e We V g a he a e ea a
D a e' e . A ea c e c a e a ha d d g P a d 1853, a d
a he ea b R a a 1857.
A a d he a e e he d' f , b a , ef e e e e e ed
a Ja , P a d, h a a ge e be g e ed a P e , R a a. B
1856 a d a g a ed 1857 b he b he Te d a d Ma
A A I EC F E B I C EA ACH. 22
Mehed ea , he Raf Ref e , a ef e b a P e , had a face
a ea f f hec a e , a d he da d c eached e e e ,
b a ed c d ca a d ca ha e e hea ed b f e f d;
a he ca ed " he d' f e a c d e ," e g he ec d f
be g he d' f ef e , acc d g he Acade Of W d Rec d .
I 1857, he a d c fR a a a a ed 275 f c de
. W h h f g e, R a a a eg e ed a he f c d
d c a c , bef e he a ge d c g ae ch a he U ed
S a e f A e ca (1860), R a (1863), Me c (1901) Pe a (1913 ).
I 1875, c de a d c e ed b Da d Bea a h h e Wa e ,
Pe a a. Th ed he e g f he B adf d f e d, h ch, b he
1880 , d ced 77 e ce f he g ba . H e e , b he e d f he
19 h ce , he R a E e, a c a he B a be c a
A e ba a , had a e he ead d c .
Sa e K e e ab hed A e ca' f ef e P b gh Se e h
a e e ea G a S ee , 1853. I add he ac We V g a
a d Pe a a, a a ea e N h A e ca a O
S g , O a , Ca ada 1858, d g b Ja e M e W a . The d c e
a O S g ched ff a b h ch b gh h d ed f ec a
a d e he a ea. Ne fed e e d c e ed ea b h gh he
a e 19 h ce a d he a ea de e ed a a ge e che ca ef g
ce e a d e cha ge.
The de US e e d c de ed ha e beg h Ed
D a e' d g f a 69-f (21 ) e 1859, O C ee ea T e,
Pe a a, f he Se eca O C a ( g a e d g 25 ba e e
da (4.0 3/d), b he e d f he ea a a he a e f 15 ba e e
da (2.4 3/d)). The d g e h gh he 1800 , d e b he de a d f
e e ea d a . I beca e a a a a c ce he ea a f
he 20 h ce ; he d c f he e a c b e g e ded a
de a d ha ha a ge a ed he d h da . Ea " ca " f d
e h e Pe a aa dO a ee c aced b de a d,
ead g " b " Oh , Te a , O ah a, a d Ca f a.
A A I EC F E B I C EA ACH. 23
Earl crude production
in the U.S.
Year Volume
1859 2,000 ba e ( 270 )
1869 4,215,000 ba e ( 5.750 105 )
1879 19,914,146 ba e ( 2.717 106 )
1889 35,163,513 ba e ( 4.797 106 )
1899 57,084,428 ba e ( 7.788 106 )
1906 126,493,936 ba e ( 1.726 107 )
U he d-1950 c a a he d' f e f e , b af e h e
c e . La e , f g he 1973 a d 1979 e e g c e , he e a
g f ca ed a c e age he b ec f e e . Th b gh
gh he c ce ha a ed e ce ha e e a ,a
ea a a ec ca ab e e e g ce. A h gh a he e he
c a d a ed c ee e d e, a e d f c ea ed
d c a d ed ced de a d he f g ea ca ed a g he
1980 . Th a a , h e e , a d b he f decade f he 21
ce d c ab ea had e ed he e .
T da , ab 90% f eh c a f e eed a e e b . Pe e a a e
40% f a e e g c he U ed S a e , b e bef
2% f e ec c ge e a . Pe e ' ha a ab e, de e
A A I EC F E B I C EA ACH. 24
e eg ce e g he a a f eh c e a d a he ba e f a
d a che ca a e e f he d' a c d e .
The h ee d c gc e a e Sa d A ab a, R a, a d he U ed
S a e . Ab 80% f he d' ead acce b e e e e a e ca ed he
M dd e Ea , h 62.5% c gf he A ab 5: Sa d A ab a (12.5%), UAE,
I a , Qa a a d K a . H e e , h h gh ce (ab e $100/ba e ),
Ve e e a ha a ge e e e ha Sa d A ab a d e c de e e e
de ed f b e .
A e e ab 16,788 a a ga e e ea a a d ab
12,672 ga e e a e de de e e .
I d a ha e ed a ead c ea e d c a e a c f
e e d c e he ea . The d c f e e d c d
a 243.5 MMT d g 2016-17 262.3 MMT 2018-19.
L ef ed Na a Ga (LNG) f g g ahead b hc a , h
8 e R-LNG e a (4 he e a d 4 he ea c a ) c g .
T ge he h he e g e a , e a ca ac each 74 MMTPA.
The a c e a e a a ab e he e e d h ch c d g
he g e e a d a e ec . f he e e c a e a e h ge
ea a d hb d a ba a ce hee .
The a d ga d c a dd b d a ed b g e e ed
c a e h ch a e hea eg a ed e ce g f Re a ce I d e . Af e
be a g he e a f he c a e e I da O C a Ld
(IOCL), H d a Pe e C . L d (HPCL) a d Bha a Pe e C .
A A I EC F E B I C EA ACH. 25
L d (BPCL) b f d a e a he a e f ced e e e
d c a be he c .
The ce f g e e ae f a c e a g he e c a e
h gh e a fe a d b d . eg e e c a e e OIL
I d a, ONGC a d GAIL h ch e a e he d c a d ha e bea e
f he b d b de ha e g a d ef ed e e . I he ae
ec c a e e Aba G ea Off h e, E a a d Re a ce ha e
a aged g a d a e h cha geab e deg ee f cce .
He e he f he a e e C a e I d a:-
GAIL India:-
GAIL (I d a) L ed, I d a Na a Ga c a , eg a g a a ec f
he Na a Ga a e cha gh f d c e a e g. I e ha e
c ea f e d a a , c ea g a a e f g ee e e g c d ha
c ec a c ce e h a ga f e d I d a. GAIL
g g b e bec e a a e he I e a a a e . The
c a e e e ea ed 2009-10 a R 24,000 c e h e f f
11%. I a e a aged fa g gc a h h gh c e e ba e
I d a.
Reliance Industries:-
I I d a a ge ae e e c a . The c a ach e g he
e a ab e g h he a decade a d d e f g Re a . I a e
A A I EC F E B I C EA ACH. 26
e ha $30 b I da a ed c a .I a h gh
e e e gc a f I d a. The c a e f he a ge
ef g a d e che ca c e e he d a Ja aga .
he a d b f e e ,c g ga a d d e e he I d a
a e . The c a e e e f R 36,000 c e a d e f f 0.5%. d e
he g e e c The c a ffe ag a d e be c
ce e f a ce. Wh ch f ce he c a e he d c a be he
c ? E e af e he be a a h c ea ed g ba c de ce c ea g
he e e ch. The c a d ce a a a ge f d c ,
f e che ca a d e a c af f e a d ec a b ca a d
a e he e ea e a a a dd e ca e a d h d ed f
d e .
The c a e a e he a ge ef e he c d c gO f
e a a a da d . Th Ref e acc f 40% f he I d a a O
d c . The c a ha a ef e e d c g a a ge a e f
e e f e & ec a e . e M ba a d he he V ha ha a a .
I h ge a e g e c f a & eg a ff ce fac a ed b
a &d b fa c ec g e a ,a a e ce
a , ea e , e e e a d LPG d b h . The
c a a e ha e acc f ab 20% a d 10% f he a
ef g ca ac . The c a e e e ea ed a R 34,000 c e a d e
f ag f 0.65% 2010.
ONGC Corporation:-
The c a a 3d e e E a &P d c d .I
d ce 803 M Me c T e f c de a d 485 B C b c Me e f
Na a Ga f 111 f e d . I he b gge a a c a h 40
a d ga ec 15 c e . The c a ea ed R . 20,000 c e h
e f ag f 34% 2010. NGC h d he a ge ha e f h d ca b
I da & c b e e 79% f I d a a d ga d c .
A A I EC F E B I C EA ACH. 2
Government Initiatives
S e f he a a e a e b he G e e fI da e
a d ga ec a e:
A e U B dge 2019-20, I d a Sche e Ka a a e Ka a a , he
M f Pe e & Na a Ga ha e ab ed SC/ST e e e e
d gB LPG T a a .Sae e eg f Bha a
Pe e , H d a Pe e a dI da O C a e d US$
20 b ef e e a add , b 2022.
The G e e fI da a g e a d 5,000 c e ed
b ga (CBG) a b 2023.
G e e fI da a g e R 70,000 c e (US$ 9.97
b ) e a d he ga e e e ac he c .
I Se e be 2018, G e e fI daa ed f ca ce e
a ac e e a d ech g e ec e f fed
h ch e ec ed ead h d ca b d c h R 50 a h
c e (US$ 745.82 b ) he e e ea .
S a e- f ae a g e e h R 723 c e (US$
111.30 ) U a P ade h e he ef ed e e ga
(LPG) f a c e abd e c ea e e g a d ge e a e
e e , acc d g M Dha e d a P adha , M e f
Pe e a d Na a Ga , G e e f I d a.
A ga e cha ge a ed de b g a e -d e c g he
e eg a e f I d a a d he a f he a e ead be
a e he U Cab e , acc d g M Dha e d a P adha ,
M e f Pe e a d Na a Ga , G e e f I d a.
The O M a e b -CNG (c e ed a a ga )
a a d a ed f a c ea ac f R 7,000 c e (US$ 1.10
b ) e he e f c ea f e .
Achievements
F g a e he ach e e e f he g e e d g 2018:
The e e g ade be ee I d a a d US e ch US$ 10 b
he f a c a ea 2019-20.
A A I EC F E B I C EA ACH. 2
A Se e be 01, 2019, Ga A h f I d a L d. (GAIL) ha
a ge ha e (69.90 e ce 11,411 ) f he c a a ga
e e e (16,324 )
A f Oc 1, 2019 (P), he e e e 24,127 LPG d b ( f PSU )
I d a.
The a be f OMC e a e c ea ed 65,973 a he a f
Oc be 2019 (P) f 59,595 a he e d f FY17.
U de C Ga D b (CGD) e , 86 Ge g a h ca A ea
c g 174 d c 22 S a e / U Te e a e c e ed.
A f J e 2019, e ha 7.23 c e c ec ha e bee e ea ed
de P adha Ma U a a Y a a (PMUY).
The e e d b eg e a d ad g d ffe e d f
cha .F c de e ec e e d c d b a he
ea e cha h a . The ef g a g , he ead e
a c a ed h f da e a f c e d c ad g a d c de b g
ed c ab ce a e he e e ce cha e g g.
I e e a f he e a de ead a a ,h e e,
ha he d a ch g, a a e e c a e f gh cha he
b e . The e e d ha a a eed f b h eg a a d
e e a f a g he be a e f he d ffe d b
cha e a a ab e.
U de g d, he ga a e de . The a f e eaded
a d f eg a ( he dg ade f e ) a e a ge ha he a a . Each a
e ed h a e ec c e e chec ha c e ea e f a
ab a h gh a cab e he a a age e e a d he
he a e a age e e f he c a h e d c
he ga a a e .
A A I EC F E B I C EA ACH. 2
The e a ec f c cha ge f c he d a d he d b
eg e . The b g c a e ha e a ed g he e e f
c de a he e e d c . The e a he ef g e e a e:
h ch d c a e ha a ? Wh ch c de e? Wh ch
? Wh e he e a he c e fac g e d a he ga a ae
ba c, a e & ef e .
The a f c h he d b cha e a e a ac
a e a e ea f a a , de a d f eca g, e e h e eh d
a d ea / &f a ched g, h ch e e ce he d a ch.
The ech g ha c a e de he e ee c a
e e e , e ec a he e e a a eff c e c e ca be b a ed.
Ma age e e e d a da d e c de f e g
ech g .
I d a ha ead e ab hed e f he c e f he e a a d c f
e che ca a d e che ca e a ed d c he e e ae f
affa . W h he ec cg h c ce gd he U ed S a e , he
A a de e g a , e ec a I d a, d efe ab a d he g ba
e che ca a e a a d ce f he e d c . Th e f he a
cha e ge fac g I d a e che ca d .
PESTEL a a a d f P ca , Ec c, S c a , Tech g ca ,
E e a a d Lega a a a d de c be a f a e f ac -
e e a fac ed he e e a c e f a eg c
a age e . I a a f he e e a a a he c d c g a eg c
a a a dg e a e e f he d ffe e ac e e a fac
ha he c a ha a e c de a .
Political:-
P ca fac a e deg ee g e e e e e he ec .
S ec f ca , ca fac c de a ea ch a a c , ab a , a ,
ade, a ff , a d ca ab . P ca fac a a c fg d
a d e ce h ch he g e e a de be ded a d h e
A A I EC F E B I C EA ACH. 30
ha he g e e d e a be ded. Be de , g e e ha e
g ea a h he hea h ed ca ,a d fa c e f a a .
Economical:-
Social:-
S c a fac c de he c a a ec a d c de hea h
c c e , a g h a e, age d b , ca ee a de a d
e ha afe . T e d c a fac affec he de a d f a c a
d c a dh ha c a eae .F e a e, a d a a
a a e a d e g f ce ( h c ea g he c f ab ).
M e e;c a e a cha ge a a e f a age e a eg e ada
he e c a e d ( ch a ec g de e ).
Technological:-
Tech g ca fac c de ec g ca a d e e a a ec , ch a
R&D ac ,a a , ech g ce e a d he a e f ech g ca
cha ge. The ca f d ba e e , eff c e d c e e
a d f e ce c g dec . I add , ech g ca h f ca affec
c , a , a d ead a .
Environmental:-
E e a fac c de ea he , c a e. Add a , c ea g
a ae e c a e cha ge affec g h c a e e a e a d he
d c he ffe b h c ea g e a e a dd h g
de ge g e .
A A I EC F E B I C EA ACH. 31
Legal:-
Conclusion
C de e f he ece a ed d de e ed c d e .A
a e a f c a c de ce ca ha e b h d ec a d d ec
e e he ec f he c e . The ab f c de ce
g a c a e a a . The ef e, ce ha e bee eg a a d
c e .
A A I EC F E B I C EA ACH. 32
CHAPTER - 4. RESEARCH METHODOLOGY
F he e f a a , e e ca be c a f ed h ee b ad
ca eg e :
(I) I e e e
(II) Ma e ab e - e e e
(III)N - a e ab e, - e e e
The a e g ed e ae , a e ab a d e f- d f he
e e e he ea he e e e f a eae a e he e,
a e a ea d e e a e.
The e e a e he a ee e f a e ca e f e e
e .
The a e g ed e f a e f he a e ab e - - e e e
, a e ab a d a e he e a d a e a e e ec e
he ea he a ee e f a e a e a e.
The a e g ed e a d he e e e f a e ( h ca e a a
ee e f a e) f he - a e ab e - e e e ( e ce
e )ae a dc f d c .
A a e h ch ac ed a d he d ha e de e be ef f
b a f ca g b e a d ge e a e f f e ed a
e e e a d he e e f he e f he e ed
g he h ca a d a d/ b d g b e e d h gh de e
a f . The ef e, he c ec a ach a e ch e
be INCOME APPROACH .e. f d g ca a ed a e f he e c e
ece ab e b e f g a d/ e g ha a e .
Pe ,h e, e , c e a ha e c. fa de he ca eg f
'I e e P e ' a d he a e h d be dea e a ed f ge e a
e f ac ,f a ca e g, gage, a e, cha e b
ca a g he e c e ge e a ed f he (e ce f he ec a ed
e ch a a ce, ca a ga e c.)
A A I EC F E B I C EA ACH. 33
OBJECTIVES -
- T e f e e h c e
- The Ge e a Te a dC d de h ch he La d f Pe
- P ha e bee a ed
- Me h d g f a a f Pe P
The e c a f ed a a I e e e a d a a ,
be ca ed b a c ea ach.
Pe b e he b e fd b a d e a g. f
e e d c e e , d e e , b ca a d . I I d a he
e e ef ga dd b a fa a g e e c ed ec ,
e e be g a ca ce a d ed d c, d b a ha d ed
b g e e c a e .' The g e e c a e ed he
a e ga dd b f e e d c a e I d a _O C a
L d; H d a Pe e C a I d; Bha a Pe e C a L d;
a d IBP C a L d. The e c a e eef ed b eg g a
d e ca d a a c a e a he e f a a a f
e e b e .H e e, ae a e e Re a ce Pe e
L d. a d E a a e c g _ _c de ef ga dd b b e .
The G e e ' c f dec g e e d c a d a g
a e a e .e. h a da d c ed e a ce ' e c e
he e a f f ee c g. Th ha e . ff c e a df c a g
ea ce e b e .
The G e e c a e a e fac g ff c e f he e ae
a e . P a e a e a e e b ea c a c, c e a d he e e
ef ga dd b c ae e d e ec e f ca e. Re a ce
ha cce f c ed d' a ge e e ef e a
Ja aga , G a a . S fa ed e d c h gh he d b
e fg e e c a e b g ad a e ab h g
e . Re a ce ha a ead e ab hed d b e f ef ed
e e ga (LPG) a d ha f a ed ad e e e f e ea
e e .
D e ed ce g e e c a dg g: c e , h ec
e g h gh e e f ac , a ac a d cha ge .
A A I EC F E B I C EA ACH. 34
S fa , he b e f e a fa d c h de a d
a a e ceed g he , h a c e .A ch h
b e a ega ded a e ca e a d afe.
H gh f , h gh de a d a d c ed a ead a a
ad e a . The e a e a ge be f e he ed a a d a
ca e /cha ge hee f ed dca , e he e e ce c a 'ad e a
d ca e' e a g h he d .
The e ee fa a ed / d b ed b he c a e a e
he a e c fg e e -a e a g ca e e , a d a e
e e a c (defe e a, ha d ca ed a). N h a e
c ha h e e bee e a ed a d a e a e be g ade b e ffe
he ba f e f ea db e e a.
(a) C a ed (COCO)
(b) Dea e ed ( C e)
(c) Dea e ea ed ( B T e)
(d) C a ea ed ( A T e)
Whe e he a d a d b d g ed b he dea e a d g e g e
ea e c a . The dea e a ge he ce e I dea e h e
e e d c,a ch he a age e f h ha d .
A A I EC F E B I C EA ACH. 35
d) COMPANY LEASED ( A T pe)
Whe e he a d a d b d g ed b he c a a d g e g
e ea e he dea e . The dea e a h d he ce e/dea e h _ e
e e d c .
I a be ed ha ha e e be he e h c e - he Pe OL
D e e ,P a d O Ta a e ALWAYS OWNED BY THE OIL
COMPANY. (The d c a ea g f D e e D b )
F e ga d ga e ea e f g c ea a ce f
G e e ae e ed:
(a) A N Ob ec Ce f ca e (NOC) e ed f he D c C ec .
(b) The NOC ed b he D c C ec af e ece g d d a NOCS
- The S e e de f P ce
- S e e de E g ee , P.W.D.
- The D c Mag a e
- The Ad a f Naga Pa had Naga N ga
- The T Pa g De a e
A a f he e, L ce e e ed f he E e De a e a d The
Pe e De a e f age a d a e f e e d c.
Th ec g e ed b PLENTY f eg a a d he e f e b
ae fe c ea . E e a e f I d a ha ac h ch g e he
e ec f Pe P S e. He e he a e f Ra a ha c de ed f
a ce.
The e e a a ea (ag c a a d) a e g e ed b he
Ra a ha La d Re e e (C e f Ag c a La d f N - ag c a
e R a A ea) R e , 1992. Ce a ec f Ra a ha La d
Re e e (A e ,C e a d Reg a a f Ag c a La d f
C c f C e a, H e a d Pe P ) R e , 1978 a e a
a cab e.
I U ba A ea he e a d eg a f he e ec e A ea De e e
A h aea cab e.
A A I EC F E B I C EA ACH. 36
4.3.3 THE GENERAL TERMS AND CONDITIONS UNDER WHICH THE
LAND FOR PETROL PUMPS HAVE BEEN ALLOTTED ARE
- The a d f e a a ed ea e f a e d a g g
f 15 25 ea 99 ea
- The e f ea e a / a be e a ega d he f e e a
f ea e c de ed.
- The ea e e ha be 5% e ea f he e e ed ce f a d a he e
fa e .
- The a d ha be e e ed f ea a e a d he e
ha be e ed.
- The e ee ha be e b e a d ab e a a he a e , a e e c.
h ch a be e ed he a d f e e.
The ec a d eg a f c ef e b e g e ed
b a fac , a f h ch a e f ' a f ab e. S e f fac h ch
ha e a ac he f ab , ec f c e a d eg a f c e
f e b e aed c ed be :
T aff c-c f he ad h ch e ab
Veh c e a a d eh c e de he c f e
Ge e a de a d f a f e,g h eh c e a
T e f d g a ea - he he ag c a ba ?
I he e a a ge ca e de e e ag c e?
De a d f e a df c a he f e - eed f
ge e a g e ?
4.4.2 COMPETITION
E e ce f c e e e he c
A A I EC F E B I C EA ACH. 3
A a ab f be e a e he c
Re a f dea e a c a a ega d ad e a .
Re a e f e a chea e a e. W h he ed c f
dec ed f ce f e e d c h fac ha bec e e
a d e a .
G h de a d be f e ' f a g e a ea a c a ed
g h f eh c e a ha a ea.
Dec f e e d c a d d da ead c ea ed
c e , ad e e e a d ed ced a g .
The e e ge ce f L ef ed Pe e Ga a d C e ed Na a Ga
a b ef e .
E e ge ce f a e a e e e ab e f e e.g. S a Ca .
T e d a d De e e a b e d a d e ec c a d ba e
d e a b e h ch a e a e e f e d .
Ca ac f ef e e . D g f e e d c d e e ca ac .
W d de f c a c de ce .
C e hf a d be e b c a a e .
Red ced eed f a e g a d ed ced d a ce d e he g h f
c ca a d f a ech g .
O he fac e a e a a ab e a he e e-a a a d
e e g he a e f e e c. e.g. S a ba aa c a g e
e , g f e , ca d , ch c a e , ce-c ea , e a a , e ce a ,
e e c.
SAFETY OF CAPITAL
A A I EC F E B I C EA ACH. 3
LIQUIDITY OF CAPITAL
The ca a I e ed h e e da
- Pe ae g f a ch ee' h ch ca be d h he
e c f a e .
- Pe e a e e e ed e h ec a a a d ec a ea e
.A age he ha a a e e ed,
h e e e h ha e a e dea e h ca ac e - ha a
e a a e.L ed a e ab b a he a e e be f e
e e ed f Pe P aea a be .
SECURITY OF INCOME
The c e a a ec ed a e e a c e f c a g. The
d de a ha e f a a d ad ca cha ge - G e e
c e f dec g e e d c a d d .
REGULARITY OF INCOME
The c e f c a g a d eg a . W h c e e e a d
agg e e a e g, eg a f c e ffe g.
The c ec f c e e ea . The h e b e be
ga ed, c ed a d ea he c e - e e he e - -a e e
age ega c f ed a f ed.
4.5 METHODOLOGY
The e a e FOUR a e ed he a a f Pe P b a d
INCOME APPROACH. The a e -
(I) W he g ed e f c e
(II) E a e e c e f a ec f ed be f ea
(III)Se ec a a e ca a a ae
(IV) A he ca a a aea d , YEARS PURCHASE (Y.P.)
he e c e f e ed f ea e/ ce e e d f e a g.
The e f a e ca be e e a ed b a f g a e.
A A I EC F E B I C EA ACH. 3
- Ide f he e e h ch ha e bee ece a c ed a d/
d.
- F d he e a dc d de h ch he e e e ha e
bee a ed.
- C ec f a c a da a ega d g
(a) Re e e da a e ea .e, a e f e , a e f d e e , a e f a d
b ca , e e e / c e f e ce a , ba aa , e a a e c. f
a ea a 3 5 ea .
(b) E e ), a a e a e da , e , he ad a e aff,
e , e ec c cha ge , a e cha ge , e e h e, age, g,
Sa a , a e ga d ce a e e e e , e a a d
a e a ce, e e a ( g ca a ), ea e e f e
e e c. ad e e e e e e , a ' a e e e , e c.
F d a e age e a a c e (G Re e e G E e d e)
C ec he da a ega d g aff c c a ea h a d a h he
ad h ch e ae a ed.
C ec he da a ega d g he ge e a b e e e , be f
c e g e he c .
C ec he da a ega d g eh c e a g h a e, a g h
a e f he c , e de a e g h a e; ea e f he a 10
ea e ab e ec f be f eh c e .
C ec he a ce f a e a d e a f he e he c f
he e de d . A g he e gh age a fac h ch
ha e bea g he a a .E a e he f a e gh age c e f a he
a ce f a e a d e a . C ec he f a c a da a f a he a ce f
ae a d e a.
Ca c a e a e age e a a f f each a ce. E a e he a e f
ee e ded b e b a g he g a e e a he
ca a a e.
E a e he ec ffe ed b e e e b c de g a
he fac affec g ec .E a e he a e f e e a d ea '
cha e b g ec a e a ed ea e a d ad acc d g
ec cc d e a ga he da e f a a .
E a e he a e a e f he e b g he ea ' cha e a
e a ed a ab e a d e a a c ef he e . e d e
da a e ea f a ea 3 5 ea .e. c fg d d ( c d g a ).
A A I EC F E B I C EA ACH. 40
4.5.1 LIFE CYCLE OF THE PETROL PUMP
Ge e a , he fe f he e de e d he ea e e d, e a d
c d f he ea e ag ee e , e e a ,g h f eh c e
a ,g h f a f he a ea, g h f e de a , c e ca
a d e ec a ed ca a ea b a ea. La d d e de ec a e
h ca , he c e e ed f e de ec a e b a a e
e aea dc a ed ea e e e , he' e e
b d g e , he ea , , e d e e , age Ta ae
ed b he c a he ce he h ca de ec a f he e e e
be ed af e b he c a e . The c ea e e d 25 ea
99 ea 15 ea .
I h fe f b d g a d e (e e e ed) d e affec
he ec c fe f he e .
The a e f e e f e / cc e he a d he e ( h ca e-
a e ) he a e f h R gh de e Be ef b U e f Pe
P .U e f a d e (Pe P ) b ec , e c ed b ,
e g a ea g a d ch a T a fe f P e Ac e a g T e &
Te e , Sa e, Lea e, M gage e c., T &C Pa g Ac c d g
De e e C Reg a , M c a Ac , H g Ac , L ce e
e ed f he E e De a e a d The Pe e De a e f
age a d a e f e e d c , N Ob ec Ce f ca e e ed f
he D c c ec af e ece g N Ob ec Ce f ca e f :
- The S e e de f P ce -
- The S e e de E g ee , P.W.D.
- The D c Mag a e
-
- The Ad a f Naga Pa had Naga N ga
- T Pa g De a e
A a e he ef e e ed ha e edge f he e a .
O ce acce ed ha he e ac a ad b e a a d d ae e
a d c ec d ca f fa e a d he eb e a d c ec a f ca
f a g b e be ef , he he c e f he e ca be e a ed b
c ec g da a ega d g a ce f e a e ec f he c a ab e
A A I EC F E B I C EA ACH. 41
e e he c he d g a ea a d b c a g he
acc da e e e h e be a ed.
S ch c a h e e fe e b ec e ba ed he ,
e e e ce a d a f ca f he a e , de e a e, a fa a
b e, ch e e e f b ec c a a d a e a he
b ec e, a e fa g ga a e e gh age a fac
a ec fc a ha be ed.
The fa ae f e e ec f he e ca h be e a ed b
c a g e de a a h he e e ed a ce f
e a h efe e ce a e gh age c e f e , a e f e a d he
da e e ff g ch e . O he ba fe a ed fa a e f e , g
a a c e ca be e a ed
A Va e h d c ec he da a ega d g e e e f Sa e f e , d e e ,
, b ca a d he d c . If he e a de he
e ce e a h g, e c g, e ba aa , he c ec he da a ega d g
he e e e a d e e d e f he e e ce .
Aga , c ec he da a ega d g he e e e ec fg d d
( c d g a e ), Sa a e f a e da , e , he ad a e
aff, e , he e e e e Te e h e, age, g, a a ,
E ec c cha ge , Wa e cha ge , T a e g a d ce a e e e e ,
Re a a d a e a ce, M c a a e e c.
Ded c ch g g f he e a ed g a a c e e , he e
a a c ef he e be a ed ca be e a ed.
Af e e a fa a e c ef he e de a a , he
e a e e a e dec de he a ae ae f ee
e ec ed be e ded b he e be a ed. The a e f e e be
e ded b he e de e d he ec ffe ed b he e a
e e .
Aga , a e h d d he f c a I c ef he f a
c ec ed f he a ce f Sa e a d Re a a d d he a e a d
e b e a a h e.
The ce fa a g a a e a ac e ea d e f d g
he a e f e e ( deg ee f ec ) e ded b he ca a e ed
ce a d f cha g a e . The a f Ne I c e f he e
A A I EC F E B I C EA ACH. 42
cha ed a d ce a d f cha g ha e ed b 100 g e
he a e f e e e ded b ha e . Th e ca e he e
c e ece ab e e e .
Ne I c e
Ra e f I e e f Pe e a I c e= 100
Ma e Va e P ce
The ea e a e e e ca be e b ad d ded ca eg e .,
1. P e e ed g c e e e A d
2. P e e ed g c e f ed e d f e .e. e d g c e
h ch e a e af e ce a e d
F eeh d e e h-b d g ha g .e a ed f e fe f 60 ea
eaec de ed a e e ed g c e e e h e
ea eh d e e h h e e ed e d f ea e a e e e
e d g c e ece ab e f e ed e d f ea e, h ch e ae
e f ea e e d.
I he ca e f e e , c ef h ch ece ab e f a ed
e d, ece a e a de, f a a c e, ce a a
a g f d, e e ea , h ch acc a e, a ce a a e f c d
e e , ca a e ed cha g he e , a he e a f
e d, a ea e e d. The e a g a fa a c e af e e g
a de ch a f gf d c de ed a ee he ca a
e ed e ea he ca a . The a e f e e ea ed a
e ea ca a a Re e a e Ra e f e e a d
c e ae h he ec ffe ed b he e e . The a e f e e
a h ch he a fa a gf d e ed acc a e ca a
e ed, b he e d f he e d f h ch c e ece ab e, a
Acc a e Ra e. I ab e ece a , b ga , ha he a f
a a g f d, a c d e e , a he acc a e a e,
acc a e he ca a e ed b he e f e a f he e d f
h ch c e ece ab e. I e f ch b ga , he acc a e ae f
ee e ed be ch e ha he e ea e ae f ee
c e d g ec ffe ed b he e e . Ne A a I c ef
he e he ef e ca a ed a D a Ra e.
I he ca e f e e , c ef h ch c de ed be ece ab e
e e , acc a f ca a ece a . N a fa a
c e he ef e e ed be e a de a g f d. Ne A a
A A I EC F E B I C EA ACH. 43
I c ef he e he ef e ca a ed a S g e Ra e ., a he
e ea e ae f ee .
O ce c ec he f a a e ed ab e f he a ce f Sa e
a d Re a f Pe , he g e he e gh age each a ce f
Pe P he ba f he a ea, ca , eh c e c , fac e ded,
e e, dea e h f h ch c a , e a f he e e c. a d
b g a he a ce f Sa e a d Re a he a e a f f he
c a .
The fac ha , ca e f Pe P , d ff c ge he ff c e be
f a ce f Sa e a d Re a fc a ab e e .I ch a
a , he a e f e e e ded b he e ca be e a ed
he ba f
(a) A a f ae fc e c a e ab h e e h he a ea a d
(b) Ad he a e f e e e ded b h b
() C a gf c a c ef h h c ef c a f
e .
( )C a g h ec c d ce .
A A I EC F E B I C EA ACH. 44
CHAPTER 5 DATA PRESENTATION & DATA ANALYSIS
Af e ee g a he g h f he e e d a dc e e d f he
e e d c , I a e a e e f he H d a Pe e e
h ch ca ed a Sa adha Cha Ra a, Ma R ad f Ah edabad, G a a ,
I d a.
FIG E1 I I H 1
A A I EC F E B I C EA ACH. 45
Petrol Pump Name
OM PETROLEUM
GSTIN - 24AAACH1118B1ZI
Reg a Pe - 30000
P e Pe - 20000
D e e - 30000
Diesel Meters: 8
A A I EC F E B I C EA ACH. 46
Position of Petrol Pump
1) HP Pe e
2) Bha a Pe e
A d he d a ce be ee 2 e O 150 Me e .
FIG E2 A E I E IE
A A I EC F E B I C EA ACH. 4
DATA ANALYSIS
YEAR: 2019
A A I EC F E B I C EA ACH. 4
A A I EC F E B I C EA ACH. 4
A A I EC F E B I C EA ACH. 50
A A I EC F E B I C EA ACH. 51
A A I EC F E B I C EA ACH. 52
A A I EC F E B I C EA ACH. 53
A A I EC F E B I C EA ACH. 54
A A I EC F E B I C EA ACH. 55
A A I EC F E B I C EA ACH. 56
A A I EC F E B I C EA ACH. 5
A A I EC F E B I C EA ACH. 5
A A I EC F E B I C EA ACH. 5
A A I EC F E B I C EA ACH. 60
A A I EC F E B I C EA ACH. 61
A A I EC F E B I C EA ACH. 62
A A I EC F E B I C EA ACH. 63
A A I EC F E B I C EA ACH. 64
A A I EC F E B I C EA ACH. 65
A A I EC F E B I C EA ACH. 66
A A I EC F E B I C EA ACH. 6
A A I EC F E B I C EA ACH. 6
A A I EC F E B I C EA ACH. 6
A A I EC F E B I C EA ACH. 0
A A I EC F E B I C EA ACH. 1
A A I EC F E B I C EA ACH. 2
A A I EC F E B I C EA ACH. 3
A A I EC F E B I C EA ACH. 4
A A I EC F E B I C EA ACH. 5
A A I EC F E B I C EA ACH. 6
A A I EC F E B I C EA ACH.
A A I EC F E B I C EA ACH.
A A I EC F E B I C EA ACH.
A A I EC F E B I C EA ACH. 0
A A I EC F E B I C EA ACH. 1
A A I EC F E B I C EA ACH. 2
A A I EC F E B I C EA ACH. 3
REPORT:2019
INCOME
Pe Sa e A
P f ae f b ca = RS. 6,00,000.00
G I c e = RS 37,94,47,727.04
EXPENSES
C f Pe
P e Ta e = RS. 1,69,000.00
A A I EC F E B I C EA ACH. 4
Ma e a ce E e e = RS. 1,20,000.00
I a ce P e = RS. 1,96,000.00
G E e e =. RS 36,61,73,102.14
Ne Ma a ab e P f = G I c e-G E e e
= 37,94,47,727.04 - 36,61,73,102.14
= 1,00,74,624.9 / Yea .
Ca a g a 6% Y e d, Va e f b e = 1,00,74,624.9*100/6
= RS 16,79,10,415.00
Purchase price for the outlet should not be more than Appro
RS.1679 Lacs.
A A I EC F E B I C EA ACH. 5
Year 2018
A A I EC F E B I C EA ACH. 6
REPORT:2018
INCOME
Pe Sa e A
P f ae f b ca = RS. 5,00,000.00
G I c e = RS 38,95,39,197.19
EXPENSES
C f Pe
P e Ta e = RS. 1,69,000.00
A A I EC F E B I C EA ACH.
Te e h e, P age, S a e = RS. 54,000.00
Ma e a ce E e e = RS. 1,20,000.00
I a ce P e = RS. 1,96,000.00
G E e e =. RS 37,98,68,969.15
Ne Ma a ab e P f = G I c e-G E e e
= 38,95,39,197.19 - 37,98,68,969.15
= 96,70,228.04 / Yea .
Ca a g a 6% Y e d, Va e f b e = 96,70,228.04*100/6
= RS 16,11,70,467.33
A A I EC F E B I C EA ACH.
NOTES ON THE ASSUMPTIONS
1- He e a da a ge ea d da a a c ec F Pe P
O e.
2- A d a he I f a a c ec f a d he Pe P
S e .
A A I EC F E B I C EA ACH.
CHAPTER 6 CONCLUSION
A S d g he g h a d e f Pe e d c a d c d c g da a
a a f he HP Pe P - SOLA, We de e a c c ha a g a
e f ab e a d ab e b e .A ca ge e a e a e
c e f a fe e. A d e e ea h b e g g.
Benefits:
1. O g Pe P a Pe fec P ace g e e g dI c e.
2. I g 24 7 a d Wh e ea ca g e c a I c e.
3. B e e ed a ec f c ed e .
4. Ea e B e .
5. E e ea b e g g beca e f a c he eh c e
be a c ea e.
A A I EC F E B I C EA ACH. 0
CHAPTER 7 PHOTOGRAPH OF PETROL PUMP
FIG E3 I I H 2
FIG E4 I I H 3
A A I EC F E B I C EA ACH. 1
FIG E5 I I H 4
FIG E6 I I H 5
A A I EC F E B I C EA ACH. 2