Nirma University Journal of Business and Management Studies
Harsh Pratap Singh1
, Omkar Sahoo1 and Pratham Parekh1
1Institute of Management, Nirma University, Ahmedabad, Gujarat, India
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The growing adoption of compressed natural gas (CNG) vehicles in India is driving demand for efficient, financially viable CNG infrastructure. This case examines CityGrid Gas Limited’s (CGGL) investment decision for establishing a CNG station at Abu Road, Rajasthan. CGGL is evaluating two alternatives: a daughter booster (DB) station supplied through mobile cascades and an online station connected directly to the existing gas pipeline network. The case evaluates these alternatives considering capital investment, operating costs, demand growth, financing, taxation, depreciation, station capacity, and long-term infrastructure requirements. It also examines each alternative’s strategic flexibility and scalability, as CNG demand is expected to increase significantly. The case enables learners to apply capital budgeting techniques while integrating financial and non-financial considerations in infrastructure investment decisions.
Financial feasibility, capital budgeting, cash flow analysis and net present value (NPV)
