IGL – Sustainably Managing India’s Energy
Indraprastha Gas Limited is an Indian natural gas distribution company
that provides cooking and vehicular fuel. It is a joint venture between
GAIL (holding 22.5%), Bharat Petroleum Corporation Limited (holding
22.5%), and the Government of NCT of Delhi (holding 5%).
IGL is fuelling the largest CNG Bus Fleet in the World.
Why it is known as Compressed natural gas?
CNG (Compressed Natural Gas) is a mixture of hydrocarbons consisting
of approximately 80 to 90 percent methane in gaseous form. Because of
its low energy density, it is compressed to a pressure of 200 to 250
Kg/cm2 (to enhance the vehicle on-board storage in a cylinder), hence
the name Compressed Natural Gas.
1. Gathering pipeline system – the gathering system includes low-pressure
small pipelines that transport raw natural gas from the wellhead to the
processing plant.
2. Intrastate/interstate pipeline system – Pipelines can be classified as
intrastate or interstate. Their technical and operational characteristics
are substantially similar, and they both have the same goal: to
transport natural gas from the processing plant to the centers of its
consumption.
3. Distribution pipeline system – the distribution pipeline system aims to
deliver gas to the end consumers.
Compressor stations are placed in intervals along the pipeline to ensure
natural gas remains pressurized. The natural gas enters the compressor
stations, the gas is compressed by either a turbine, motor, or engine. Metering
stations are also installed to monitor the pressure, flow, and leaks.
Liquefied Natural Gas (LNG) shipping is preferred for international transport.
Where natural gas cannot be delivered on land, it can be liquified and
delivered by ship. The CNG is transported from one place to another on
land via pipes or on water via ships.
CNG’s price is 75.61 Rs/Litre as compared to Petrol’s 96.72 Rs/Litre and
Diesel’s at 89.62 Rs/Litre.
IGL started its operations in NCT of Delhi in 1999 Natural gas is used in
the transportation sector as Compressed Natural Gas (CNG), in the
domestic and commercial sectors as Piped Natural Gas (PNG), and
industrial establishments as R-LNG.
IGL – Sustainably Managing India’s Energy
only 9 CNG stations and 1000 PNG customers.
Today IGL has its operations in NCT of Delhi, Noida, Greater Noida,
Ghaziabad, Rewari, Karnal, Kaithal, Kanpur, Muzaffarnagar, and Ajmer
with 652 CNG stations, 18.91 lacs residential connections, and 7400
industrial/commercial customers.
The company's main goal is
1) to provide safe, convenient, and dependable natural gas supply to its
customers in the residential and commercial sectors.
2)To provide a more environmentally friendly alternative to auto fuel.
This will significantly reduce the alarmingly high level of pollution.
 MISSION
'Committed to providing safe, reliable, and clean energy solutions to
improve quality of life and enhance stakeholders’ value'.
 VISION
'India’s leading clean energy solution provider, with an international
presence, is through customer centricity, innovative technology, and
diversification.
AIM
Since IGL has seen significant growth in profit and new connections in
the last few years, it intends to expand its geographical areas. The
expansion of CNG infrastructure into new geographical areas and the
construction of new green corridors will continue to boost CNG business.
 Business Model of IGL
IGL – Sustainably Managing India’s Energy
The company’s major revenue market share comes from CNG i.e., 72%,
from Industries and commercial is 14% and the rest is from residential
and others i.e., 14%.
 Holdings
IGL board is fairly well diversified with 10 members including two each
from GAIL and BPCL, one from Govt. Of Delhi and five independent
directors.
IGL – Sustainably Managing India’s Energy
Holding %
13
7
1
45
9
20
5
Promoters
Govt of NCT of Delhi
Foreign Institutions Investments
Mutual Funds
Indian Financial Institutions and Banks
Insurance Companies
Public/Others
Promoters- 45% (GAIL-22.5% & BPCL-22.5%)
Govt. of NCT of Delhi- 5%
FII (Foreign Institutions Investors)-20%
Mutual Funds-9%
Indian Financial Institutions and Banks-1%
Insurance Companies-7%
Public/Others-13%
Current Sales Volume Mix (%)
IGL – Sustainably Managing India’s Energy
Sales Volume Mix
1,2
7
14
72
CNG
Commercial/Industry
Sale to other CGD cos.
Residential
 Sales Volume
*MMSCMD means Million Metric Standard Cubic Meter per day
IGL – Sustainably Managing India’s Energy
The spread of the pipeline network of different transporters is as under:
 Gas Sourcing
Firm allocation from Govt. of India of domestic gas for the entire CNG
and PNG segment consumption. Lower prices of domestic gas make the
economies of switching to gas more attractive driving growth in CNG &
PNG- domestic segments which constitute around 79% of the total sales
volume.
I have tied up a long-term contract for R-LNG (Regasified Liquified
Natural Gas- It is used in generating electricity, manufacturing products
like fertilizers, paints, medicines, etc.) to meet PNG Industrial &
Commercial demand, and buying short-term gas from the open market
(Shell, IOCL, GSPC, BPCL, etc.)
 Sector-wise consumption of Natural Gas for April-January 2022
IGL – Sustainably Managing India’s Energy
Consumption of Natural Gas
21%
30%
5%
9%
15%
20%
Fertilizers
Power
CGD
Refinery
Petrochemical
Others
The company manages a CGD infrastructure that includes over 12,500
kilometers of pipeline and 482 CNG stations. According to the 2019
report, it meets the fuel needs of 10.5 lakh CNG vehicles and supplies
PNG to 10 lakh households in Delhi and the surrounding National
Capital Region towns.
IGL obtains its gas from GAIL's HVJ Gas Pipeline.
Currently, approximately 40% of natural gas is consumed in the
production of fertilizers.
About 30% is used in power generation, and 10% is used in LPG.
Natural gas accounts for roughly one-quarter of global energy
consumption. In India, however, it accounts for only 6% of total energy
consumption, with crude oil and coal dominating. The Indian
government has promised to increase natural gas's share to 15% by
2030.
According to the 2019-20 report, the Company had a total of 13.74 Lakh
connections in Delhi and other geographical areas as of March 31, 2020,
and in 2020-21, the Company provided more than 3.10 Lacs new
connections, the highest number of connections in a single fiscal year in
the history provided by any CGD Company in the country.
IGL – Sustainably Managing India’s Energy
However, many households still do not have PNG connections and rely
on LPG gas cylinders. According to a 2011 report, Delhi has 34.4 lakh
households, with a population growth rate of 9.28 percent per year. As a
result, the company is working hard to make Delhi the capital region
where every household has a PNG connection.
According to the latest news, Indraprastha Gas (IGL) plans to invest Rs
8,000 crore over the next five years to expand its city gas network even
as it targets a more than 40% increase in sales volumes over the same
period, its top executive has said. IGL currently operates in Delhi and
adjoining cities and plans to expand its operations to a few districts in
Uttar Pradesh, Rajasthan, and Haryana. Of the planned Rs 8,000 crore,
about Rs 6,000 crore would go towards setting up city gas infra in seven
new license areas and the balance into enhancing facilities in the four
existing areas, according to IGL’s managing director Sanjay Kumar.
IGL – Sustainably Managing India’s Energy
 Human Resource
The department of a company tasked with discovering, selecting,
hiring, and training job applicants is known as human resources
(HR).
HR is also in charge of managing employee benefits.
A human resources department also manages employee terminations
and compensation and benefits.
No matter the size of the company, the HR department is a crucial
aspect of the operation. Its duties include increasing employee
productivity and safeguarding the business from any problems that
might develop within the workforce.
 Human Resource Management- HRM is the art of managing
people at work in such a manner that they give their best to the
organization for achieving its set goals.
12 Human Resource functions that help to move the
organization forward:
1. Human resource planning
2. Recruitment and selection
3. Performance management
4. Learning and development
5. Career planning
6. Function evaluation
7. Rewards
8. Industrial relations
9. Employee participation and communication
10.Health and safety
11. Personal wellbeing
IGL – Sustainably Managing India’s Energy
12. Administrative responsibilities
Performance Management System: A performance Management
system is the systematic approach to measuring the performance of
the employees. It is essential in ensuring that workers stay productive
and engaged. Good Performance management involves good
leadership, clear goal setting, and open feedback.
On what basis the performance of employees measured
Knowing the appropriate systems to track is necessary for measuring
employee performance. Important points to consider while assessing
employee performance:
a)
b)
c)
d)
e)
f)
g)
h)
Work Execution
Work Quality
Punctuality
Attitude
Positive Habits
Creativity
Sales Revenue
Customer and Peer feedback
IGL follows a BALANCED SCORECARD to measure the
performance of the employees.
What is a Balanced Scorecard?
A balanced scorecard is a strategic management performance metric
that helps companies identify and improve their internal operations to
help their external outcomes. It measures past performance data and
provides organizations with feedback on how to make better decisions in
the future.
The four perspectives of the Balanced Scorecard
IGL – Sustainably Managing India’s Energy
1.
2.
3.
4.
Financial Perspective
Customer Perspective
Internal Business Perspective
Learning & Growth Perspective
Each Perspective has its set objectives, the measures used to monitor
the objective, the set target based on the small period, and the initiatives
taken by the company.
 Now, Companies are shifting to a Real-Time Appraisal
Strategy for Performance Management.
Real-Time Appraisal - Employees receive more immediate or
continuous feedback throughout the year. Instead of waiting for the
annual performance review for feedback, it's instant.
Real-time feedback is useful since it enhances performance at the
moment. Real-time feedback makes sure that your employees are
readjusting their priorities as needed. It enables individuals to learn
from their errors and even modify their behavior. Encouragement of
career development is also helpful, especially in our world that is
changing so quickly.
Encourage real-time feedback at your company to show your employees
that you are there for them at every turn. People will automatically feel
their bosses care about their growth when managers and direct reports
share comments throughout the year.
 So, IGL shortly, going to adapt the Real-time Appraisal
strategy to bring more out of the employees for the
organization's benefit.
CONCLUSION
Indraprastha Gas Limited (IGL) has many plans to establish a Greener
and Cleaner India. Six stations dispensing LNG to long-haul heavy
vehicles, such as trucks and buses, will be set up by the firm at an
investment of Rs 100–120 crore over two or three years. In the national
capital region, the business also plans to build 50 battery swapping
facilities for electric vehicles.
At its CNG stations, it has already put in place two fixed charging
facilities, and five more are being built.
Numerous CNG stations are currently being set up, and the goal will
soon be accomplished.
IGL – Sustainably Managing India’s Energy