Access to energy for cooking is one of the major challenges that rural India faces. Most of the rural households rely heavily upon fuelwood and traditional open-fire cookstoves for cooking activities. And everyday collection of fuelwood is time consuming. Hence, women often gather fuelwood to make charcoal. While the use of charcoal has some advantages, the investment of time in making charcoal is worthwhile. We compare household time investments for fuelwood and charcoal production. We developed a model to analyse fuelwood needed and time spent upon the introduction of improved cookstoves or charcoal production. Improved cookstoves using fuelwood results in the least time expenditure on the production of cooking fuel. Where else introducing charcoal marginally reduces the amount of fuelwood, but increases time spent on cooking, due to the time required to produce the charcoal. Hence, rural households who make their own charcoal spend more time on producing cooking fuel than those households relying on direct use of fuelwood.

1. 1
A PROJECT REPORT
ON
Study on Household Cooking Fuel Usage and Willingness to Convert
to LPG
FOR
OIL AND NATURAL GAS CORPORATION LIMITED
UNDER THE GUIDANCE OF
MR. HARESH M PATWARDHAN
DGM(P) – MARKETING
TOWARDS PARTIAL FULFILLMENT OF
THE REQUIREMENT FOR THE AWARD OF
MASTER OF BUSINESS ADMINISTRATION IN TELECOM MANAGEMENT
SUBMITTED BY
SWAPNIL SURYAKANT INARKAR
Abhijit Chirputkar Haresh M Patwardhan
Director, SITM DGM(P)-Marketing,
O.N.G.C
Symbiosis Institute of Telecom Management
Pune 412115
MBA TM | Batch 2017 – 2019

2. 2

3. 3

4. 4
ACKNOWLEDGEMENT
Internship in MBA is one the major stepping stone in the corporate world. It helped me
to gain industry experience. The theoretical knowledge which we learnt in the
classrooms, are practically implemented by the firm and got an opportunity to test our
ability in the real environment. This industrial experience will polish the skills and the
way we approach towards anything further in our studies.
At the outset, I would like to take this opportunity to thank Oil and Natural Gas
Corporation Limited for giving me a chance to showcase my skills and successfully
complete my summer internship in their esteemed organization and for their precious
time and valuable guidance that they provided during the training period.
I would like to express my heartfelt gratitude to my project guide Mr. Haresh M
Patwardhan DGM(P)-Marketing who gave me an excellent opportunity to work on
this project. I am grateful for his unstinted and invaluable guidance, his
recommendations and suggestions have been key instruments for the successful
completion of this project.
I would also like to express my gratitude to Mr. D V Patel DGM (Mktg), Mr. Abhishek
Choudhary (Mktg Officer), Mr. Harshal Manjari (Mktg Officer), Ms. Amrita Rao
(Mktg Officer), Mr. Eber Shibin (Mktg Officer),at Oil and Natural Gas Corporation
Limited for their constant support and motivation throughout the internship. I would
also like to thank Ms. Sangeeta Misal (HR Executive ), Mr. E N Myakal, Mr. N K Koli
and Mr. Rajeev Ranjan (Accounts ) for making me feel comfortable under pressure
throughout the training period.
I am grateful to Dr. Abhijit Chirputkar, Officiating Director, SITM, and Ms. Bhakti
Vyawahare, Training and Placement officer, SITM for their excellent co-ordination with
the industry for the Summer Internship Program and thus giving me an opportunity to
enhance my knowledge and skills.
Swapnil Inarkar (17020541184)
Symbiosis Institute of Telecom Management (SITM)
Marketing & Finance (Batch 17-19)

5. 5
ABSTRACT
Access to energy for cooking is one of the major challenges that rural India faces.
Most of the rural households rely heavily upon fuelwood and traditional open-fire
cookstoves for cooking activities. And everyday collection of fuelwood is time
consuming. Hence, women often gather fuelwood to make charcoal. While the use of
charcoal has some advantages, the investment of time in making charcoal is
worthwhile. We compare household time investments for fuelwood and charcoal
production. We developed a model to analyse fuelwood needed and time spent upon
the introduction of improved cookstoves or charcoal production.
Improved cookstoves using fuelwood results in the least time expenditure on the
production of cooking fuel. Where else introducing charcoal marginally reduces the
amount of fuelwood, but increases time spent on cooking, due to the time required to
produce the charcoal. Hence, rural households who make their own charcoal spend
more time on producing cooking fuel than those households relying on direct use of
fuelwood.

6. 6
CONTENTS
TOPIC SUB LEVEL I SUB LEVEL II PG NO
EXECUTIVE SUMMARY 8
OBJECTIVE 10
INTRODUCTION
About the Company
Vision and Mission 11
Growth Story 12
The Company Evolution 13
ONGC Post Liberalization 14
PRODUCT TECHNOLOGY
Benefits of Transparent
Cylinder
16
Explosion Proof
Light and Efficient
Translucent Body
High-Tech
Non- Corrosive
Aesthetically
Appealing
UV Protected
Made from Recyclable
Materials
Reduced Maintenance
Customer Services 17
Creating New 18
Collecting more Information
of Distributor Locator
19
Size based cylinder
Customer Care System
20
Tracking your lpg cyinder
PAHAL 21
Online form 22
Online booking
23
SMS booking
IVRS BOOKING SYSTEM 24

7. 7
OPT for Portability
25
Rate Your Distributor
Register for second cylinder
RESEARCH METHODOLOGY 26
FUEL CONSUMPTION
27Fuels used for cooking
Monthly expenses on
cooking fuel 30
Percentage of
unconnected households
availing free cooking fuel
31
Total monthly expenses
on cooking fuels
AWARENESS
Awareness about LPG as
a cooking fuel
32Awareness about PAHAL
scheme
Awareness about OMCs
BARRIERS TO LPG
PENETRATION
33
Price barrier
High initial cost of
connection
High recurring cost of
refilling LPG
Suggested financial
incentives for conversion
to LPG
34
Estimated price
households are willing to
pay for LPG
Long waiting time to get
LPG refill
Taste of food cooked on
LPG as a barrier
CONCLUSION 35
LIST OF FIGURES 36
ABBREVATIONS 37
REFERENCE 38

8. 8
EXECUTIVE SUMMARY
The progressive growth of a country is the reach, access and utilization of energy
sources across the country. For India to witness an inclusive and holistic growth, a
strong focus needs to be on the rural populace, energy usage being one of the primary
areas of emphasis.
The rural population in India still dependent on traditional fuels such as cow dung,
biomass, kerosene etc, for cooking purpose. Liquefied petroleum gas (LPG) as a
preferred fuel for cooking has been restricted to urban areas, with rural areas still
dependent on traditional fuels due to affordability, accessibility and awareness issues.
Addressing these rural populaces to switch to cleaner and efficient cooking, thereby
achieving the objective of progressive growth.
The Government of India has declared the year 2016 as “The year of LPG consumers”
with focus on supplying clean fuel to majority of the households in the coming three
years. The government has launched the Pradhan Mantri Ujjwala Yojana, which aims
to provide LPG connections to five crores below poverty line (BPL) households by
2018-19. The scheme is expected to be a fillip for the rural populace to use the clean
fuel in an affordable manner.
The objective for LPG adoption and cooking fuel usage among the unconnected
households by:
• Mapping current cooking fuel usage and expenditure incurred on cooking fuel
of unconnected households,
• Barriers for LPG use among urban and rural households that currently do not
use LPG as a cooking fuel,
• Assessing market readiness and price sensitivity for new LPG connections and
refilling, and identifying markets that could easily adopt LPG,
• Enumerating conversion drivers that can facilitate LPG adoption in these
markets, and
• Providing directions to formulate interventions through schemes/policy
frameworks increase demand.
The key findings are:
a) Current cooking fuel consumption
13
Primary cooking fuels used in India by unconnected households are biomass, cow
dung cakes and firewood. Firewood is the dominant cooking fuel used in rural areas,
while biomass and cow dung are largely procured for free from agriculture waste and
owned livestock, firewood is often purchased, as it is not available, accessible or
allowed to be collected from reserved/protected forests. An average 35% unconnected
household procure firewood for free, 76% procure cow-dung cakes for free and 88%
procure biomass for free for cooking.

9. 9
b) Barriers to adoption to LPG
• Affordability of LPG-Including payment of security deposit and recurring
refilling charges.
• Availability of LPG-Including improving last-mile connectivity (increase
distributors).
• Awareness of LPG-Raising awareness about usage of LPG stoves and safety,
as well as advantages for health and environment.
At an overall level, LPG penetration across the households would require addressing
the barriers of affordability, accessibility and awareness. With affordability emerging
as a dominant and recurring barrier. For accessibility, it would require initiatives on
strengthening the infrastructure, particularly on the distribution network for rural and
challenging areas. Awareness-related barrier on health, taste and safety will need to
be addressed through programmes.
Figure 1:View of Uran Plant, Mumbai

10. 10
OBJECTIVE
The survey, commissioned by PPAC to identify factors that will encourage households
to switch to LPG. The output of the survey, will serve as a base for preparing a master
plan to increase LPG at an all-India level.
The scope of work:
• Consumption of fuel in current cooking and amount spent on cooking fuel of
unconnected households;
• Identify barriers affecting use of LPG in rural and urban areas, especially in low-
usage areas with specific emphasis on price and other barriers;
• Estimate price-sensitivity for purchasing new LPG connection and refill;
• Increasing LPG in market in short term;
• Provide direction for formulating interventions that can be addressed through
schemes/ policy; and
• Probability for unconnected households in socio economic.
Figure 2: Promoting consumer to switch to LPG.

11. 11
INTRODUCTION
About the Company
Vision
To be global leader in integrated energy business through sustainable growth,
knowledge excellence and exemplary governance practices.
Mission –
World Class
▪ Dedicated to excellence by leveraging competitive advantages in R&D and
technology with involved people.
▪ Imbibe high standards of business ethics and organizational values.
▪ Abiding commitment to safety, health and environment to enrich quality of
community life.
▪ Foster a culture of trust, openness and mutual concern to make working a
stimulating and challenging experience for our people.
▪ Strive for customer delight through quality products and services.
Integrated in Energy Business
▪ Focus on domestic and international oil and gas exploration and production
business opportunities.
▪ Provide value linkages in other sectors of energy business.
▪ Create growth opportunities and maximize shareholder value.
Dominant Indian Leadership
▪ Retain dominant position in Indian petroleum sector and enhance India's
energy availability.

12. 12
GROWTH STORY
ONGC was set up under the visionary leadership of Pandit Jawahar Lal Nehru. Pandit
Nehru reposed faith in Shri Keshav Dev Malviya who laid the foundation of ONGC in
the form of Oil and Gas division, under Geological Survey of India, in 1955. A few
months later, it was converted into an Oil and Natural Gas Directorate. The Directorate
was converted into Commission and christened Oil & Natural Gas Commission on
14th August 1956.
"Not only had India set up her own machinery for oil exploration and exploitation. An
efficient oil commission had been built where a large number of bright young men and
women had been trained and they were doing good work" said Pandit Jawaharlal
Nehru, India's first Prime Minister to Lord Mountbatten, on ONGC in 1959.
In 1994, Oil and Natural Gas Commission was converted in to a Corporation, and in
1997 it was recognized as one of the Navratnas by the Government of India.
Subsequently, it has been conferred with Maharatna status in the year 2010.
In its 60 years of illustrious journey, ONGC has crossed many a milestone to realize
the energy aspirations of India. The journey of ONGC, over these years, has been a
tale of conviction, courage and commitment. ONGCs’ superlative efforts have resulted
in converting earlier frontier areas into new hydrocarbon provinces. From a modest
beginning, ONGC has grown to be one of the largest E&P companies in the world in
terms of reserves and production.
Figure 3: View of oil & gas process complex at Mumbai Offshore.

13. 13
The Company Evolution
• 1955 – Inception
• 1958 – First Oil in Cambay
• 1960 – Oil gas discovery in Gujarat
• 1963 – Oil in Assam
• 1965 – Concept of ONGC Videsh Operations
• 1970 – first Offshore well
• 1974 – Mumbai High discovered
• 1976 – Bassein Gas field of Mumbai High
• 1984 – GAIL formed out of ONGC
• 1993 – ONGC a limited company
• 1993 – Govt of India divest 2% share
• 1994 – 2% share to employees
• 1999 – Equity swap ONGC, IOC, GAIL
• 2003 – Acquired Mangalore Refineries Petrochemicals Ltd from Birla Group
• 2003 – 1st equity Oil & gas from Sudan / Vietnam
• 2004 – Govt of India divests 10%
• 2006 – Diversification – ONGC Petro additives Ltd and ONGC Mangalore Petro Ltd
• 2007 – ONGC Energy Centre formed
• 2010 – Coal Bed Methane Production
• 2013 – Oil at Kazakhstan/Mozambique
With more than 50 years of Exploration ONGC had discovered 6 of the 7 Producing basins of
India. These Oil Producing Basins are;
• 1958 – Cambay, Gujarat
• 1967 – Rajasthan
• 1973 – Assam
• 1974 – Mumbai Offshore
• 1980 – Krishna Godavari Basin
• 1985 – Cauvery Basin
ONGC as an integrated Oil & Gas Corporate has developed in-house capability in all aspects
of exploration and production business i.e., Acquisition, Processing & Interpretation (API) of
Seismic data, drilling, work-over and well stimulation operations, engineering & construction,
production, processing, refining, transportation, marketing, applied R&D and training, etc.
Figure 4: LPG Sphere storage

14. 14
ONGC Post Liberalization
The liberalized economic policy, adopted by the Government of India in July 1991,
sought to deregulate and de-license the core sectors (including petroleum sector) with
partial disinvestments of government equity in Public Sector Undertakings and other
measures. As a consequence, thereof, ONGC was re-organized as a limited company
under the Company's Act, 1956 in February 1994.
Figure 5: Shareholding pattern of ONGC
Govt, 74.14%
PSUs, 10.09%
FIIs, 6.55%
Indian
Fis/MFs/Banks,
5.90%
Public, 1.85% Othes, 1.47%
Shareholding pattern in ONGC (as on 12.09.08)
Govt PSUs FIIs Indian Fis/MFs/Banks Public Othes

15. 15
Figure 6: Strategic Evolution

16. 16
PRODUCT TECHNOLOGY
Benefits of Transparent Cylinder
Explosion Proof: Safety is paramount important, when it comes to LPG cylinder,
Every cylinder has proven 100% explosion proof and safe even when engulfed in fire.
Light and Efficient: Structural design and lightweight Cylinder are user-friendly.
These cylinders are almost half the weight of metal cylinder and come with specially
designed handle rings that provide a firm grip.
Translucent Body: Translucent body cylinder enable us to check the LPG level
against light.
High-Tech: LPG Cylinder come with an optional new age RFID technology for real
time tracking of cylinders.
Non-Corrosive: The cylinder has less chances of getting strains and marks where the
cylinder do not corrode or rest unlike its metal equivalents.
Aesthetically Appealing: The cylinders can be customised as per preferences and
requirements. Choice of the colour, ensure branding, etc. The Cylinder also come in
various sizes we can pick the right one that fits for the purpose.
UV Protected: The outer and inner casing and the glass filament winded bottle is
made by adding UV protective additives so as to withstand adverse weather conditions
and prevent degradation.
Made from Recyclable Materials: Cylinder are 100% eco friendly as the composite
glass fibre bottle can be crushed and added to the concrete used for building overhang
bridges, constructions etc.
Reduced Maintenance: The high quality heavy duty casing around the cylinder is
incredibly strong and durable thus making it low maintenance and cost effective.
Figure 7: Transparent Cylinder in various sizes and colour

17. 17
PRODUCT TECHNOLOGY
Customer Services
• LPG Distributor ensure availability of sufficient filled cylinders of correct quantity
and quality for timely delivery of filled cylinders to the customers.
LPG distributor should provide adequate delivery for making home delivery of LPG
cylinders commensurate to the average daily refill sales and also care is taken of
breakdowns/absenteeism. However, home delivery of LPG cylinders is done Cash or
the online payment is done.
• A suggestion/complaint book is maintained and made readily available
to customers on demand which provides a better service to the customer.
• A message(SMS) indicating booking of the cylinder is done and displayed to
the customer throw mobile, which gets making customer an easy way of
booking the LPG cylinder.
.
• The Distributor provide one telephone connection for every 4000 refills sales
e.g. a Distributor having an average monthly refill sale of 10000 provide 3
telephone connections. However, in cases where the average monthly refill
sales exceed 8000 and IVRS refill booking facility is available/fully operational,
two telephones is considered adequate.
Figure 8: Refilling of LPG Cylinder

18. 18
Creating New Connection Online : Registor LPG connection can be done online
without going to the distributor,which can be done at any time and place , with varoius
option by uploading kyc online.
There are more option available to the customers who need to regularise his
connections, the customers who want to reactivate their dormant customer status and
also in case if he wants to transfer the connection and change of name in case of
death of connection holder, the KYC is required to be submitted.
Figure 9: Online website for registering new LPG connection
Figure 10: Further proses is carried out in registoring new connecting

19. 19
Collecting more Information of Distributor Locator:
By selecting state, district, city, area you can locate your near by distributor regarding
any LPG query or connecting.
Figure 11: Information about distributor name, address, contact number
Size based cylinder:
• Government has allowed the sale of 5 Kg LPG cylinder with / without Domestic
Pressure Regulator.
• Subsequently sale of 5 Kg FTL cylinder has been extended to LPG
distributorship points and targeting customer like Kirana / General etc.
Figure 12: Application Requesting Size based cylinder

20. 20
Customer Care System: Customer Care relationship and satisfaction is important of
the customer. Where requirement/need of the customer is satisfied.
Figure 13: Example of Feedback form
Tracking your lpg cyinder :LPG cyinder can be tracked by searching distributor
name and customer number, when is the lpg cyinder is delivered to the coustomer.
Whereas the other option avaialbe is searching the state, district, distributor and
customer number.
Figure 14 :Online tracking LPG cylinder

21. 21
PAHAL:
The Pratyaksh Hanstantrit Labh (PAHAL) scheme, which ensures that LPG subsidy is
directly deposited in the consumer’s bank account, is a progressive step towards
increasing LPG usage
With the help of this modified scheme, the LPG consumer can now receive subsidy in
his bank account by two methods.
Such a consumer will be called CTC (Cash Transfer Compliant) once he joins the
scheme and is ready to receive subsidy in the bank account.
The two options are:
Option I (Primary): Aadhaar number is available it will remain the medium of cash
transfer. Thus, an LPG consumer who has an Aadhaar Number has to link it to the
bank account number and to the LPG consumer number.
Option II (Secondary): If LPG consumer does not have an Aadhaar number, then he
can directly receive subsidy in his bank account without the use of Aadhaar number.
This option which has now been introduced in the modified scheme ensures that LPG
subsidy which is not denied to an LPG consumer on account of lack of Aadhaar
number.
In this option either consumer can Present bank account information (bank account
holder name /account number /IFSC code) to the LPG distributor for capture in LPG
database OR Present LPG consumer information (17 digit LPG consumer ID) to his
bank.
Figure 15: View of PAHAL website

22. 22
• Online form: Online form available for submitting KYC offline, format for LPG
transfer and getting new connection in other location and format for reactivation
of LPG connection.
Figure 16: Download of the LPG Form for other reason
• Book your cylinder: Booking of the cylinder can be done through various
option like mobile app, SMS, IVRS, online website.
Figure 17: LPG Cylinder Booking

23. 23
• Online booking: Now customer can book they cylinder threw online just by
login in and password.
Figure 18: Online booking
• SMS booking: Registered mobile number customer can book the cylinder
threw SMS where the distributor does the further work of delivering the cylinder.
Figure 19: SMS Booking

24. 24
• IVRS BOOKING SYSTEM:
To start using IVRS, we need to do is register your phone number (landline and/or mobile)
with your LPG distributor, this is a one-time exercise. For registering your phone number, we
can download the form, details are filled and hand it over to the distributorship. We can use
landline or mobile to book the cylinder, however we suggest to register both your landline
and mobile number so that we have the benefit of receiving the confirmation SMS on
registered Mobile phone.
Using the facility is very simple, just dial the unique IVRS number for the State and follow
instructions.
Example: if you are an LPG customer residing in the State of Maharashtra, you need to dial
9420456789. Just follow the instructions and refill will be booked instantly. The IVRS
numbers for the different States.
The benefits of using IVRS for refill cylinder booking:
• we can book the cylinder at your convenience 24 x 7 on all 365 days
• No extra charges
• We can choose the language - Option of Local Language / Hindi / English is available
• Receive Confirmation of Booking through SMS
• We will also receive Confirmation of Delivery through SMS
Figure 20: IVRS Booking

25. 25
• OPT for Portability
Portability of LPG connections
In case we want to move to a distributor closer to our home or are unhappy with the
services of our present distributor, we can opt for the distributor of our choice within a
cluster of LPG distributors in the vicinity under the portability scheme. This scheme is
operational in in select cities of the country.
No transfer fee or additional security deposit will be charged for transfer of connection
under portability scheme.
To exercise this option you we need to log in by using your login id and password.
• Rate Your Distributor
Rate your distributor for service. To exercise this option, we need to log in by using
your login id and password.
• Register for second cylinder:
Customers with single LPG connections can avail of a second cylinder over the
counter, by simply submitting their original documents and identity proofs with their
distributor. In a move aimed at cutting down queues and the number of trips that
distributors have to make for refills, two major oil marketing companies Bharat
Petroleum Corporation Limited (BPCL) and Indian Oil Corporation (IOCL) have
expedited the system to avail a second cylinder for customers who have a single
cylinder connection.

26. 26
RESEARCH METHODOLOGY
Research Methodology is done on Fuel/s used for cooking, quantity used/month,
amount spent/month, type of fuel used - firewood, kerosene, biomass, cow dung cake,
coal, etc. (Sources: PPAC).
Awareness of LPG as a cooking fuel, awareness of Pratyaksh Hanstantarit Labh
(PAHAL) scheme,
Reasons for not applying for LPG connection till now – Not aware of application
process, application process is tedious, non-availability of documents required for
application, LPG distributor centre is located far away, long waiting time to receive
LPG connection, size of cylinder is large -14.2 kg, taste of food cooked in LPG is not
palatable, LPG is considered unsafe, high initial cost for application, high recurring
cost of cylinder, long waiting time to get refill, lack of knowledge regarding how to use
LPG stove.
Motivators for shifting to LPG - Price at which household is willing to purchase LPG,
initial security deposit, recurring cost, financial incentive that would make the
household shift to LPG, preferred cylinder size, distance of distributor centre,
distribution channel suggested for LPG in respective areas.
26
Fuel used for cooking based on ease of availability, ease of usage, price of fuel, safety
of usage, environment friendliness, fuel/s available in the area, fuel/s used most for
cooking currently - firewood, kerosene, biomass, cow dung cake, coal, LPG.
• Availability of LPG in GP area, key reasons for non-usage of LPG in GP, non-
availability of distributor, long waiting time to get refill, non-availability of
documents required for application, taste of food cooked in LPG is not
palatable, process of application is tedious, high initial cost for application, high
recurring cost of cylinder, size of cylinder is very large -14.2 kg, distributor
center is far, satisfied with fuel used currently.
• Time taken to get an LPG cylinder refilled.
• Likely conversion of unconnected households to LPG if all barriers are
removed.

27. 27
FUEL CONSUMPTION
One of the main objectives of the fuel consumption pattern where use of LPG is low.
The analysis presents the “as-is” condition of the respondents, which forms the basis
for formulating strategies to convert them into LPG users (source :PPAC)
Fuels used for cooking
Use of firewood as cooking fuel is found to be significantly high among all the states
firewood (94% households), kerosene (69% households),cow dung cakes (60%
households) and biomass (33% households). Most of the households use more than
one.
We need to target these states diverting them to convert using LPG
Firewood
• No substantial difference is observed in the quantity consumed between rural
(121 kg/month) and urban (118 kg/month) households.
• Approximately 100-145 kg/month of firewood is used per household across all
states, where firewood is easily available in dense forest, but other fuels such
as biomass and cow dung cakes are not available .
• Districts located in dense forest areas and with high tribal population have high
firewood
consumption - more than 150 kg/month on average.
Kerosene
Kerosene usage for cooking in the states of Meghalaya (5%), Nagaland
(23%), Chhattisgarh (48%), West Bengal(52%) and Rajasthan (59%) is lower
when compared to the other states covered in the survey.
94
69
60
33
0
10
20
30
40
50
60
70
80
90
100
Firewood Kerosene Cow Dung Bio mass(crop residue)
Fuel Used for Cooking

28. 28
The salient features of kerosene usage are:
• No significant difference is observed in the usage of kerosene as fuel between
unconnected LPG households in urban and rural households.
• Kerosene is the principal fuel used for lighting, i.e., to ignite firewood or cow
dung cakes. It is also used for other purposes such as running water pumps.
Biomass
Biomass utilisation for the purpose of cooking in the states of West Bengal
(63%), Tripura (63%) and Uttar Pradesh (57%) is higher than rest of the states
surveyed. Usage of biomass is negligible in the North eastern states of Assam
(7%), Meghalaya (1%) and Nagaland (0%).
Salient features of biomass usage are discussed below:
• Nearly 35.7% of rural households use biomass due to its higher and easy
availability. The number drops significantly to 23.3% for urban centres.
• Usage of biomass is highest in West Bengal followed by Tripura, Uttar Pradesh,
Bihar and Rajasthan.
• Moderate usage of biomass is seen in Jharkhand, Odisha, Chhattisgarh,
Madhya Pradesh and Gujarat.
• Biomass is used only for cooking purposes in all the surveyed states, except
West Bengal, where it is also used for lighting.
• Agricultural belts with easy availability of biomass from sugarcane, bajra,
mustard farming mustard and potato.
• South Tripura has ample biomass from paddy farming; both biomass and
firewood are used equally.
Cow dung cake
Cow dung cakes are preferred by households in the states of Madhya Pradesh,
Bihar, Uttar Pradesh, Rajasthan and West Bengal. Negligible to low usage of
cow dung cakes is present in the North eastern states of Nagaland, Tripura,
Meghalaya and Assam.
The salient features of usage of cow dung cakes are:
• A significant 62% of unconnected rural households use cow dung cakes as fuel,
whereas the number is only around 51% for urban households. Cow dung
cakes are easily available in rural areas and hence used widely.
• Cow dung cakes are extensively used in Uttar Pradesh, Bihar, West Bengal,
Chhattisgarh and Madhya Pradesh.
• Negligible to low usage of cow dung cakes is seen in Nagaland, Tripura,
Meghalaya, Assam and Odisha.
• All districts in Bihar, West Bengal and Madhya Pradesh show high usage of
cow dung cakes alongside firewood. In Chhattisgarh, all districts show high
usage of cow dung cakes, except tribal areas such as Bastar, Dantewada and
Surguja, where cow dung is mixed with paddy husk, red soil and beeswax to
produce wonderful artefacts.
• In all the states, cow dung cakes are used only as cooking fuel.

29. 29
Quantity of fuel used for cooking per month
Firewood
• No substantial difference is observed in the quantity consumed between rural
(121 kg/month) and urban (118 kg/month) households.
• Approximately 100-145 kg/month of firewood is used per household across all
states, where firewood is easily available, but other fuels such as biomass and
cow dung cakes are not available.
• Districts located in dense forest areas and with high tribal population have high
firewood consumption.
Cow dung
• There is a significant difference in the average quantity of fuel consumed by
rural and urban households - 102 kg/month and 64 kg/month, respectively.
Biomass
• Due to low income, large family sizes and abundant availability of biomass is
paddy for farming.
Kerosene
• Quantity of kerosene used per month is more than or equal to 4 litres in areas.
• Kerosene is available as a substitute in areas during heavy rains when usage
of other fuels is not possible.
119.5
3
83 83.5
121
3
102
83
118
3
64
84
0
20
40
60
80
100
120
140
Firewood Kerosene Cow Dung Bio mass(crop residue)
Fuel Consumption (units/month) Rural &Urban
Total Rural Urban

30. 30
Monthly expenses on cooking fuel
The monthly expenses are computed considering the three primary fuels used for
cooking -including firewood, biomass and/or cow dung - and for households that
procure at least one of these fuels from the open market at a price.
A total of 67,437 households have cited that at least one of the three fuels is procured
from the open market.
Firewood
Households using firewood for cooking, on an average, consume 121 kg/month and
spend approximately Rs343/month for it (taking into consideration only those who buy
from the market). Due to the low availability of other fuel.
Biomass
Households using biomass for cooking, on an average, consume 83 kg/month and
spend approximately Rs 121/month for it (taking into consideration only those who buy
from the market).
Cow dung
Households using cow dung cakes for cooking, on an average, consume 98 kg/month
and spend approximately Rs 118/month for it.
Kerosene
Households using kerosene for cooking, on an average, consume 3 litre/month and
spend approximately Rs 72/month for it (taking into consideration only those who buy
from the PDS/open market).
Coal and charcoal
Households using coal and charcoal for cooking, on an average, consume 26
kg/month and spend approximately Rs 208/month for it (taking into consideration only
those who buy from the open market).

31. 31
Percentage of unconnected households availing free cooking fuel
Firewood, biomass and cow dung cakes are used in varying quantities by unconnected
households. While biomass and cow dung are largely available for free from
agriculture waste and livestock, firewood is purchased from the open market in areas
where it is not available or not accessible or firewood collection from forests is
restricted by the forest department.
Total monthly expenses on cooking fuels
Since households use multiple fuels and also obtain some fuels for free at times, the
average amount spent on all fuels collectively in a month. The total amount spent on
cooking fuels (firewood, biomass and/or cow dung) is Rs 358/month across all states
among households the purchase at least one of the fuels from the open market.
Significant difference is seen between rural and urban areas with respect to the total
monthly spend on cooking fuels – Rs 354/month (free procurement - 37%) and Rs
372/month (free procurement – 25%), respectively.
For cooking fuel declines from 41% for households earning less than Rs 2,250/month
to 26% for those earning more than Rs 5,000/month. Increase in earning capacity
results in greater ability to purchase and lower propensity to spend time and effort in
procurement of free fuel.
Monthly expenses on cooking fuels also show a high degree of correlation with the
median household income(MHI). Increase in MHI leads to greater expenditure on
cooking fuels (since the component of free fuel declines).
Average monthly expenses for the lowest MHI segment have been estimated at Rs
334/month with 59% households procuring paid fuel. The expenses increase to Rs
356/month for the middle MHI segment, with 66% procuring paid fuel, and reach Rs
396/month for the high MHI segment, where 74% procure paidfuel.
358
354
372
367
362
357
345
350
355
360
365
370
375
Total Rural Area Urban Area Naxalite Area Forest Area Total Area
Monthly expenses on cooking fuels (Rs/month)

32. 32
AWARENESS
Awareness about LPG as a cooking fuel
LPG as a cooking fuel is close to 93% among the unconnected households across the
selected states. There is no significant difference in awareness between rural (92.6%)
and urban areas (94.4%). LPG is more than 90% in all states except Jharkhand-88%,
Odisha-85%, Gujarat-85% and Rajasthan-83%.
Reduction of air pollution in every household, health improvement, save non-
renewable biomass, and supporting local economic development, developing nation
to increase the use of liquefied petroleum gas (LPG) as a clean cooking solution. In
the present of targeted subsidies, LPG will be the solution for common people.
We need to education of consumers both in terms of health and environmental
benefits, but also in the household economics of LPG, to help households understand
how to compare the costs of LPG refills.
LPG requires investment in infrastructure (import, bulk storage, transportation, and
filling facilities and LPG cylinders) and expanded distribution and retailing networks to
ensure reliable and affordable supply and safe delivery to end-users.
Awareness about PAHAL scheme
The Pratyaksh Hanstantrit Labh (PAHAL) scheme, which ensures that LPG subsidy is
directly deposited in the consumer’s bank account, is a progressive step towards
increasing LPG usage.
▪ Once the cylinder is booked and customer is enrolled in PAHAL , he/she will get
cash subsidy (Rs. 568) as an permanent advance directly into their bank account
which can be used to pay for the first cylinder.
▪ The consumer gets the advantage to buy 12 LPG cylinder weighing 14.2 Kgs
OR 34 5 Kgs cylinders. Subsidy amount = Current subsidised rate – market
price. Whereas the difference amount is credited to the customer’s bank
account.
▪ New LPG’s would be available in the market in a much simpler way as compared
to previous process as back logs would be reduced.
Around 57% unconnected households are aware about the PAHAL scheme. Lower
awareness about PAHAL was recorded in
Nagaland (8%), Meghalaya (15%), Odisha (32%), Gujarat (42%) and Uttar Pradesh
(49%).
Awareness about OMCs
Awareness about oil-marketing companies (OMCs) was also checked with the
surveyed unconnected households. High awareness emerged for Indane, the LPG
brand name of IOCL (77%), followed by Bharat Gas promoted by BPCL (62%) and HP
Gas (44%) of HPCL.

33. 33
Barriers to LPG penetration
The barriers preventing large-scale provides penetration of LPG across the states.
The two most significant barriers are:
• High initial cost of LPG connection, including the high security deposit and the
price of a gas stove and
• High increasing cost of cylinder.
• Long waiting time to get a connection
• Long waiting time for getting a cylinder refill
• Distance located of the distributor centre and
• Complexity in the process of application
The major barriers preventing a large-scale penetration of LPG are ranked as given
below: (Source: PPAC)
• Rank 1 – High initial cost of connection (86.3%)
• Rank 2 - High recurring cost of LPG refill (83.4%)
• Rank 3 - Long waiting time for LPG connection (63.3%)
• Rank 4 - Long waiting time for cylinder refill (61.2%)
• Rank 5 - Process of application is tedious (58.8%)
• Rank 6 - Distribution center distance (53.4%)
• Rank 7 - Do not know how to use an LPG stove (35.4%)
• Rank 8 - Not aware about the process of application for an LPG connection
(26.7%)
• Rank 9 - Do not have required documents (14.3%)
• Rank 10 - Size of the cylinder is large (14.3%)
Price barrier
• High initial cost of connection
The high initial cost of connection (comprising security deposit and the cost of a
stove) as well as the recurring cost of a gas cylinder were singled out as the top two
barriers.
The high initial cost of an LPG connection has emerged as the biggest barrier across
households irrespective of rural (86%) and urban (87%) areas, and the income levels
(86% for households with income below Rs 2,250/month and 87% for households with
income above Rs 2,250/month.
• High recurring cost of refilling LPG
The high recurring cost of refilling an LPG cylinder has been identified as a barrier by
83% of households.
It has emerged as the biggest barrier across households, irrespective of rural (84%)
and urban (82%) areas, and income levels (82% for households with income below
Rs 2,250/month and 84% for households with income above Rs 2,250/month.

34. 34
Suggested financial incentives for conversion to LPG
With both high initial cost and recurring cost emerging as significant deterrents to
large-scale penetration of LPG.
It is important to devise suitable financial incentives targeting these price barriers.
The households were enquired about their preference among three options:
• Monthly instalment for the security deposit of a cylinder
• A reduction in the recurring price of LPG refill
• Waiving off the LPG security deposit cost
Ranking wise for reducing initial outgo towards the security deposit
• 41% households prefer waiving off the security deposit cost,
• 38% prefer reduction in the recurring cost of LPG and
• 21% are comfortable with a possible equated-monthly instalment (EMI) option
Estimated price households are willing to pay for LPG
As part of the survey (source PPAC),the surveyed households were enquired
regarding the price they were willing to pay for procuring LPG in a month. Based on
their responses, the willingness to pay for LPG is estimated at Rs 317/month. The
willingness in rural and urban areas is estimated at Rs 313/month and Rs
333/month.
This is a significant difference, which clearly implies that
• LPG, is high among women, who have to directly bear the inconvenience and
hazards of using traditional cooking fuel,
• Women are likely to strongly influence households to convert to LPG as a
cooking fuel.
Long waiting time to get LPG refill
About 61% of the unconnected households surveyed have cited long waiting time for
refill LPG cylinder as a barrier for LPG usage.
This concern is greater in rural areas (62%) than urban areas (57%).
Taste of food cooked on LPG as a barrier
• 26% unconnected households in both rural and urban areas was a significant
obstacle for Taste of food cooked on LPG stoves. Whereas taste was
somewhat a lower barrier among women, with 24% citing it as a deterrent,
compared with 26% among men.
• Cooking of hard grains, such as bajra roti and bati, was considered difficult with
LPG. Roti prepared on firewood or cow-dung cake flame is considered to retain
its sweetness, whereas that prepared LPG flame is considered to a loss of that
sweetness.
• More than 60% unconnected households in these districts believe they will not
like the food cooked on LPG. The perception is that food may be not be fully
cooked by the gas flame, particularly on the sides, whereas it gets cooked
uniformly using a firewood flame.

35. 35
CONCLUSION
The household are more than willing to accept LPG as their primary source of cooking
if the concerns highlighted by them are addressed to promote LPG usage in their area,
97% agreed for LPG.
The concerns derived can be broadly classified into three areas:
• Affordability of LPG-Including payment of security deposit and recurring
refilling charges.
• Availability of LPG-Including improving last-mile connectivity (increase
distributors).
• Awareness of LPG-Raising awareness about usage of LPG stoves and safety,
as well as advantages for health and environment.
LPG promotion needed to address the following critical issues:
• Reduction cost of LPG connections, particularly for low-income households.
• LPG cost should be either equal to or below their current expenses on cooking
fuel and creating awareness of LPG usage costs.
• To access valid ID cards and regarding the process of applying for LPG
connection being tedious, the need for simplifying the process of getting a
connection is evident.
• Understanding that the current waiting time for accessing a cylinder. (by
strengthening the distribution system)
• Rural section and hilly terrains of the population can enjoying access to mobile
phones, using mobile reach in marketing plan of LPG.
• Population can access to bank accounts, it seems possible to extend direct
benefit transfer of LPG (DBTL) for most of the targeted set.
• Taste, cooking patterns and safety-related aspects would need targeted
campaigns to resolve misconceptions. Specially with local food preferences,
this may be a necessary interest for continuing LPG usage.
Consequently, to increase LPG penetration, multi-pronged initiatives will be required
from all stakeholders involved in different stages of the LPG value chain, to address
these key issues of affordability, accessibility and awareness.

36. 36
LIST OF FIGURES
Figure Title Page No
Figure 21: View of Uran Plant, Mumbai 9
Figure 22: Promoting consumer to switch to LPG. 10
Figure 23: View of oil & gas process complex at Mumbai Offshore 12
Figure 24: LPG Sphere storage 13
Figure 25: Shareholding pattern of ONGC 14
Figure 26: Strategic Evolution 15
Figure 27: Transparent Cylinder in various sizes and colour 16
Figure 28: Refilling of LPG Cylinder 17
Figure 29: Online website for registering new LPG connection 18
Figure 30: Further proses is carried out in registoring new connecting 18
Figure 31: Information about distributor name, address, contact number 19
Figure 32: Application Requesting Size based cylinder 19
Figure 33: Example of Feedback form 20
Figure 34 : Online tracking LPG cylinder 20
Figure 35: View of PAHAL website 21
Figure 36: Download of the LPG Form for other reason 22
Figure 37: LPG Cylinder Booking 22
Figure 38: Online booking 23
Figure 39: SMS Booking 23
Figure 40: IVRS Booking 24

37. 37
ABBREVIATION
Acronym Definition
AS Assam
BHR Bihar
CRIS CRISIL Risk and Infrastructure Solutions Ltd
CSR Corporate social responsibility
CWE Chief wage earner
DBT Direct benefit transfer
EMI Equated monthly instalment
GP Gram panchayat
GUJ Gujarat
HO Head office
JHK Jharkhand
LPG Liquefied petroleum gas
MG Meghalaya
MHI Monthly household income
MP Madhya Pradesh
NAG Nagaland
ODI Odisha
OMC Oil marketing company
OJT On-the-job training
PDS Public distribution system
PESO Petroleum and Explosives Safety Organization
PM Parallel marketers
PNG Piped natural gas
PPAC Petroleum Planning and Analysis Cell
PSU Public sector undertaking
QC Quality check
RAJ Rajasthan
RGGLV Rajiv Gandhi Gramin LPG Vitaran
RIL Reliance Industries Ltd
ROI Return on investment
SOP Standard operating procedure
TG Target group
TRIP Tripura
UP Uttar Pradesh
WB West Bengal

38. 38
REFERENCE
http://www.shvenergy.com/lpg/
http://ppac.org.in/
http://www.iip-in.com/
http://indiastandardsportal.org/standardbodiecontent.aspx?StandardBodyId=1
6
http://www.pcra.org/
http://www.dghindia.gov.in/
http://www.pngrb.gov.in/IMS/list_of_3rd_parties.html
https://ihsmarkit.com/products/lpg-report.html
http://uasg.com.ua/en/about-company/goals-and-objectives-of-the-association
http://www.climatetechwiki.org/technology/lpg#top
http://www.pmujjwalayojana.com/
file:///C:/Users/91950/Downloads/17_chapter%206.pdf
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cylinder/
https://my.ebharatgas.com/bharatgas/index.jsp
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over-the-counter/articleshow/20837338.cms