Maharashtra Natural Gas Limited (MNGL) Franchise Cost, Profit, How to Apply, Requirement, Investment, Review | SkillsAndTech

Maharashtra Natural Gas Limited (MNGL) Franchise Cost, Profit, How to Apply, Requirement, Investment, Review | SkillsAndTech

Maharashtra Natural Gas Limited (MNGL), a City Gas Distribution entity, is a joint venture of two maharatna PSUs, GAIL (India) Limited and Bharat Petroleum Corporation Limited (BPCL) with equity participation from Government of Maharashtra through MIDC and Indraprastha Gas Limited (IGL). MNGL started its journey in the year 2006 under the directives of Ministry of Petroleum and Natural Gas, Govt. of India.

MNGL has been authorized by Petroleum & Natural Gas Regulatory Board (PNGRB) to Lay, Build, Operate & Expand City Gas Distribution Project in Pune & Pimpri-Chinchwad city including adjoining areas of Hinjewadi, Chakan & Talegaon.

Compressed Natural Gas (CNG)

CNG is a fossil fuel substitute for other auto fuels such as petrol, diesel, Auto LPG etc. For use in Automobiles as fuel, Natural Gas is compressed & dispensed to vehicles at a high pressure of 200 bar to enhance the vehicle’s on-board storage capacity.

CNG is quite economical and eco-friendly than the conventional liquid auto fuels. Moreover, it is now easily available in Pune and Pimpri-Chinchwad through the ever growing network of CNG Stations.

CNG Fact

Economical

  • Easy on the pocket
  • CNG delivers high performance at low cost, as it gives your vehicle a better mileage
  • CNG does not contaminate or dilute crank case oil, giving engine an extended life

Eco Friendly

  • The use of CNG significantly reduces harmful vehicular exhaust gas emissions like carbon dioxide, carbon monoxide and other suspended particles
  • It protects the environment by reducing the effects of global warming
  • Non-toxic, non-corrosive, non-carcinogenic and hence improves public health

Safety

  • CNG is lighter than air and hence disperses quickly without any dangerous accumulation
  • CNG has a narrow flammability range making it much safer than other fuels
  • CNG has a higher ignition temperature than other fuels, reducing chances of accidental and spontaneous ignition

Eligibility criteria for MNGL Dealership

Individuals

  • Nationality: Should be Indian.
  • AgeAs on the date of application, (in completed years) not less than 21 years and not more than 65.
  • Educational Qualifications: Minimum 10th (SSC) pass or recognized.

Partnership Firms

All partners of the firm should individually fulfil the eligibility criteria as specified at 6 (a) above and each partner should submit separate application form.

Non individual Entities

  • Registered Co-operative/Consumer Societies: Registered co-operative/consumer societies registered under Societies Registration Act 1860 are eligible to apply. Only the Societies making a net profit in the preceding 3 Financial Years prior to the date of application for Dealership as certified by a Chartered Accountant.
  • Organised Bodies: Organised Bodies such as registered bus/truck associations , Charitable Trusts registered with Charity Commissioner of respective State Government and corporate houses i.e. Government Organisations/Bodies, PSUs, and Companies incorporated under Companies Act, 1956 are eligible to apply. Private limited companies would be eligible to apply only if they are in existence and also profit making during the preceding 3 financial years prior to the date of application for Dealership.
  • Fleet Operators: Fleet operators are eligible to apply. The applicant must have a fleet of minimum 5 vehicles owned and maintained by Individuals will not be eligible to apply under this category.

The following are not eligible

  • Persons convicted or against whom charges have been framed by a Court of law for any criminal offence involving moral turpitude/economic offence (other than freedom struggle).
  • Mentally unsound person / totally paralyzed.
  • Signatory to an agreement of a MS/HSD RO / SKO-LDO Dealership / LPG distributorship of any oil company terminated on the grounds of adulteration /

Documents Required for Maharashtra Natural Gas Limited(MNGL) 

At the Time of application

The applicant(s) should furnish at least one of the following documents in support of ownership of land offered for CNG Station:

  • Khasara/Khatauni or any equivalent revenue document or certificate from revenue official confirming status of ownership of the land.

Or

  • Registered sale deed

Or

  • Any other type of ownership transfer deed/ document

Or

  • Firm allotment letter issued by Government/Semi-Government bodies

In addition to the above, following documents are also required, as applicable, for evaluation as “Own land/Firm offer”: Table 3

SrNo.Situation of ownershipShare of applicant in landDocuments required in addition to aboveEvaluation As
1SelfFullNilOwned
2Self with members of family unitPartConsent letter from members of family unitOwned
3Self with other owner(s)PartConsent letter on stamp paper or an Affidavit or Power of Attorney from other owner(s)Owned
4Self and members of family unit with other owner(s)PartConsent letter from members of family unit and Consent letter on stamp paper or an Affidavit or Power of Attorney from other owner(s)Owned
5Only members of family unitPartConsent letter from members of family unitOwned
6Members of family unit with other owner(s)NilConsent letter from members of family unit and Consent letter on stamp paper or an Affidavit or Power of Attorney from other owner(s)Owned
7Self with members of family unitPart but area more than MNGL requirementConsent letter from members of family unit not availableFirm Offer
8Self with other owner(s)Part but area more than MNGL requirementConsent letter from other owner(s) not availableFirm Offer
9Self and members of family unit with other owner(s)Part but area more than MNGL requirementConsent letter from members of family unit and other owner(s) not availableFirm Offer
10Other OwnersNilAgreement to purchase/Offer letter on stamp paper/Affidavit/Power of attorneyFirm Offer

In all cases, site map with dimensions indicating survey no., hissa no., name of the road (NH/SH/Other road), nearest KM Stone, total land area and offered land, as applicable in respect of the plot being offered for CNG Station are to be attached.

Only sites that have been shortlisted after the above process will be taken up for further evaluation.

Documents required from selected candidates

Following documents will be required within 30 days from shortlisted candidates;

  • 7/12 extract of a recent date (original)
  • Document clearly indicating commercial status of the offered site
  • Ferfar (Original)
  • Demarcation plan showing the boundaries of offered plot within 4 yrs with latest recertification (original + 3 certified copies)
  • Latest tax NOC (Original)- (Applicable for sites within municipal limits).
  • Falni Map
  • Site visit report from Tehsildar (Applicable for sites outside municipal limits)
  • Land lease agreement between MIDC and selected candidate (applicable for sites in MIDC area)
  • Survey plan issued by MIDC and plot handover letter in original with 3 certified copies (applicable for sites in MIDC area).

Process of Selection of Sites and Dealers

  • The locations identified as above are advertised in two newspapers, one English and one regional vernacular newspaper having wide circulation in Pune. Persons meeting the eligibility criteria can apply and the selection will be made from amongst eligible applicants after the due evaluation process as:
    • Sites offered against the advertisement for identified locations will be scrutinized and evaluated basis site suitability and other parameters as detailed in this Sites shortlisted by the Site Selection Committee will be taken up for further evaluation for Dealership.
  • The candidate, who has offered land for CNG Station and sites which have been shortlisted, will be considered for further process basis their financial and business acumen, experience, educational qualification and other parameters as detailed in this
  • The final selection of the Dealer will be on the basis of evaluation of the land offered and evaluation of the candidate.

Suitability of Sites

The technical/commercial suitability of the land/site offered by the applicants for any location will be ascertained by a committee of MNGL officers (Site Selection Committee) based on the following parameters. In this connection, laid down norms of NHAI (National Highway Authority of India) and MoRTH (Ministry of Road Transport and Highways) may be referred to.

The offered land will be evaluated as per laid down parameters by the ‘Site Selection Committee’ which will in turn decide the marks in respect of suitability of site, which carries a maximum mark of 140, with sub-heads as under.

Sr.No.CNG Station Site Evaluation ParametersMax. Marks
1Sales potential15
2Availability of Land15
3Tenure of Lease (Minimum 15 Yrs.)15
4Lease Rental15
5Frontage15
6No earth filling required8
7No visible earth mounds/rock6
8No Low Tension Over Head Line5
9No Over Head Telephone Line5
10No Trees5
11Proximity to culvert (farther from culvert desirable)3
12Availability of Power10
13Availability of Water10
14Visibility from Road10
15No Presence of Divider3
 Total140

Security Deposit

The selected candidate before being issued the appointment letter will have to pay an interest free refundable security deposit of Rs.5,00,000/ (Rupees Five Lakhs only) & sales value for 3 days sales as mentioned against each location in the advertisement.

MNGL reserve its rights to adjust any dues to it from this amount at the time of resignation/termination. However, In case of termination of the Dealership on account of proven adulteration/malpractice, the said security deposit will be forfeited.

Tenure of Dealership

The tenure of CNG Station Dealership will be for the period of lease for that particular CNG Station, as signed by the Dealer. This will be for a minimum period of 15 years and renewable for every 10 years thereafter, subject to the examination of the performance of the Dealership by MNGL. Thus, the Dealership Agreement will be co-terminus with the Lease Agreement for a particular land. The right to terminate the Dealership agreement rests with MNGL.

Termination of Dealership

A Dealership will stand to be terminated in event of following:

  • Proven malpractice, fraud, disinclination/inability to operate the CNG Station, etc. on part of Dealer.
  • Non adherence to MNGL’s directives.

In such cases, the Land Agreement may continue to remain in force, but MNGL reserves the right to allot Dealership for the particular location/CNG Station to any other Dealer or retain the operations with MNGL itself.

However, a Dealership also stands to be terminated in the event of termination of land lease of the particular CNG Station (which could be due to closure of operations of the station because of Court/Government order, non-extension of lease by MNGL, etc.)

Termination of Lease

Land lease stands to be terminated in event of closure of operations of the station because of Court/Government order, non-extension of lease by MNGL, etc. MNGL reserves the right to terminate the lease by giving an advance notice of three (3) months to the land-owner.

How to apply for the Maharashtra Natural Gas Limited dealership ?

Application forms for Dealership is a part of the advertisement published in the newspapers. The format of the same can be downloaded from our website: www.mngl.in

 The application can be submitted on plain paper in the prescribed format as mentioned

  1. Application Fee (non refundable) : 5000/- (Demand Draft/Pay Order in favour of ‘Maharashtra Natural Gas Limited’, payable at Pune).
  2. In case of partnership, each partner will have to submit separate application forms along with separate application fee as However, while submitting the filled forms, their application forms have to be bunched together.
  3. Filled application form along with relevant enclosures, complete in all respects, should be submitted so as to reach the office address mentioned in the advertisement for the location, before the due date and time.
  4. Original of the Affidavits and Medical certificate and Copies of the other supporting documents should be submitted along with the completed application form, duly signed.
  5. The applicant should affix his / her latest photograph in the space provided for in the application form.
  6. No addition/deletion/alteration will be permitted in the application form after cut-off date for submission of application.
  7. No additional documents whatsoever will be accepted or considered after the cut off date for submission of applications.
  8. Applications received after the cut-off date for any reason, including postal delay, and those without accompanying valid documents, Affidavits, Medical Certificates etc., application fee or incomplete in any respect will not be considered and no correspondence will be entertained by MNGL in such cases, whatsoever.
  9. After the cut off date for receiving the applications as given in the advertisement, the applications received will be scrutinized. In case of applications rejected at the time of scrutiny, the concerned applicant will be advised the reasons for rejection in writing and such applicants will not be further evaluated or called for interviews.
  10. If any statement made in the application or in the documents enclosed therewith by the candidate at any stage is found to be incorrect or false and/or the applicant conceals any information which if declared would have made him/her ineligible for Dealership, the application is liable to be rejected and in case the applicant has been appointed as a Dealer, the Dealership is liable to be terminated. In such cases the candidate / Dealer shall have no claim whatsoever against the company.
  11. A person selected for Dealership after issuance of letter of appointment (LOA) will have to execute a Dealership agreement with MNGL as per its terms.

Contact Information

Maharashtra Natural Gas Limited,
Plot No. 27, Narveer Tanajiwadi ,
1st Floor, PMPML Bus Depot Commercial Building,
Shivaji Nagar, Pune – 411 005
Phone: +91-20-256 11 000
Fax: +91-20-255 11 522
Website: www.mngl.in

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