ValPro is pleased to have advised IndianOil Adani Ventures in this project on its journey of growth as part of Indian Oil and Adani Group’s collaboration.

ValPro is pleased to have advised IndianOil Adani Ventures (formerly known as Indian Oiltanking) in this project on its journey of growth as part of Indian Oil and Adani Group’s collaboration.

Groundbreaking Ceremony for P-25 BOOT Tankages Facilities Project at IOCL Panipat Refinery was held on February 22, 2024

IAVL has made a significant move in their journey, with the groundbreaking ceremony of the P-25 BOOT Tankages Facilities Project at the IOCL Panipat Refinery.

The ceremony was graced with the presence of Capt Anubhav Jain (Managing Director – IAVL), Mr. M L Dharia (ED Panipat Refinery, IOCL), Mr. Ajay Jain (Onshore EPC Head, L & T), and other senior officials from IAVL, IOC and L&T.

The groundbreaking ceremony is the beginning of what promises to be an extraordinary journey. IAVL is committed to delivering this project with the highest standards of safety, efficiency, and excellence. This project marks a significant step towards a brighter future in the oil & gas industry.

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NASDAQ listing for Roadzen

We, at ValPro, are delighted to have been part of the fundraising journey of Roadzen which lists on NASDAQ on 22nd September 2023. Our belief in the founder, Rohan Malhotra’s vision and execution in Insurtech continues to remain strong. Congratulations to the Roadzen team!

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ValPro is pleased to have advised on yet another milestone in APSEZ’s growth journey


Adani Ports and Special Economic Zone Ltd (APSEZ) has signed an agreement with Indian Oil Corp Ltd (IOCL) towards augmentation of IOC’s crude oil volumes at Mundra. IOCL shall expand its existing Crude Oil Tank Farm at APSEZ’s Mundra Port, thus enabling it to handle and blend additional 10 mmtpa crude oil at Mundra. This will support IOCL’s expansion of its Panipat Refinery (Haryana). IOCL is raising the capacity at its Panipat Refinery by 66% to 25 MMPTA to meet India’s rapidly growing energy requirements. IOCL, which accounts for nearly half of India’s petroleum products’ market share, has a refining capacity of 80.55 MMTPA and over 15,000 KM of pipeline network.
IOCL is currently operating a crude oil tank farm in an exclusive area in Adani’s Mundra Special Economic Zone, consisting of 12 tanks with a total capacity of 720,000 KL. The addition of 9 new tanks will augment the storage capacity to 1,260,000 KL, thus making Mundra Port by far the largest port based crude oil storage facility for IOCL.

“Mundra Port is a major economic gateway that serves the northern hinterland of India by providing multimodal connectivity. It gives us immense pride to strengthen our partnership further and support IOCL, which plays a vital role in ensuring the energy security of the nation. As IOCL’s trusted long-term partner, APSEZ is well equipped to handle the additional 10 MMTPA crude oil at our existing single buoy mooring (SBM) at Mundra.” said Mr Karan Adani, CEO and Whole Time Director of APSEZ.

ValPro was the exclusive advisor on this transaction between APSEZ and IOCL.


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Our director Anshuman Khanna with the TotalEnergies and Adani Group Team for their first biomethane production project in India facilitated by ValPro

Our director Anshuman Khanna with the TotalEnergies and Adani Group Team for their first biomethane production project in India facilitated by ValPro

After Texas, let’s head to India for a new adventure! Our joint venture along with the Adani Group in India, Adani TotalEnergies Gas Limited, has recently signed an agreement in partnership with one of the country’s most important cow sanctuaries: Shri Mataji Goshala. With 55,000 cows housed in this safe haven, this step is a milestone for the development of our first biomethane production project in India!

Moving forward, the biomethane production facility, with a capacity of 81 GWh, will be constructed and operated by ATGL in Barsana, south of Delhi. Thanks to Goshala, we’ll have as much as 44,000 tons of cattle manure in inputs per year, which represents approximately 50% of the facility’s needs. The rest of the inputs will be sourced from neighboring local farmers.

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Aarav Unmanned Systems’ Small Drone First To Be Certified By Government

  • DGCA certified AUS’s drone to be compliant with India’s NP-NT protocol
  • Previously, DGCA has certified three drones in the micro category
  • Small drones have wider use-cases and carry a bigger payload than micro drones.

India’s civil aviation authority directorate general of civil aviation (DGCA) has certified a drone in the small drone category developed by Bengaluru-based Aarav Unmanned Systems (AUS).

Aarav’s drone was found to be compliant with the drone guidelines set by the government under the ‘no permission, no take-off’ (NPNT) protocol for commercial drone flights within the country.

AUS is the first drone startup to be granted the certification under the small category as all previous certifications were for drones under the micro category.

The DGCA categorises drones based on weight and payload capabilities. Drones weighing between 2 Kgs and 25 Kgs are considered small drones, while micro drones are ones which weigh between 250 g and 2 Kgs, including the payload.

Small drone capabilities are much higher than the Micro drones as indicated by the increase in their payload size and weight. These often have higher quality sensors on board and larger payloads, which are in line with what businesses and industries working with drones seek, AUS said.

The company works with large mining, infrastructure, power and survey companies, including several state-run agencies and is likely to strike up more deals after the DGCA certification. With the launch of the new drone, the company aims to increase its 250% year-on-year (YoY) growth rate to 400% YoY.

The certification for AUS’ small drones has been one of the concerns over the government Drone Regulation 1.0. Last month, Singh told Inc42, that the government has been urged to include categories such as small drones for certification so that startups and individuals can apply for these permits and serve the larger use-cases that these drones offer.

The Drone Market In India

In 2018, India had legalised flying commercial drones and announced the Drone Regulations 1.0

The regulations had banned the use of drones for the delivery of goods and food. However, the government had hinted at including a clause for ecommerce and food delivery sectors in the draft of  Drone Regulations 2.0

Food delivery giant Zomato has also been testing out the drone-based deliveries in India. In 2018, the company has acquired Lucknow-based drone startup TechEagle Innovations, which is believed could boost drone delivery plans by creating a hub-to-hub delivery network.

Amazon has been preparing to handle drone delivery operation in India since 2017. The company had filed a patent application in India for the technology that lets its drones identify objects and locations mid-air for targetted deliveries.


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Bonhomia raises $500,000 from Valpro Capital, others

Bonhomia has already set up over 60 consumer experience zones across the country and plans to expand the same to more than 150 by the year end, given the strong consumer traction.

Bonhomia looks to use the funds for strengthening its distribution and manufacturing capabilities

Indulge Beverages Pvt. Ltd, which makes single-serve tea and coffee capsules under the brand name Bonhomia, has raised $500,000 in a bridge round of funding from Valpro Capital and existing investors.

It had raised $2 million from a group of angel investors in 2015. The company is currently in talks with potential strategic investors for an investment.

The New Delhi-based company, founded in 2013 by Kunal Bhagat and Tuhin Jain, is looking to use the funds for strengthening its distribution and manufacturing capabilities.

“Bonhomia has carved out a niche brand in the single-serve beverage segment and is poised at the ideal inflection point to capitalize on the aspirational consumption segment of urban India. Both Kunal and Tuhin are driving operations and strategy efficiently to capitalize on the strong foundation built by them,” said Anshuman Khanna, director, Valpro Capital.

Bonhomia has already set up over 60 consumer experience zones across the country and plans to expand the same to more than 150 by the year end, given the strong consumer traction. The company’s capsules and brewing machines are available in retail stores like Croma, Foodhall, Hypercity and Godrej Nature’s Basket.


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Indulge Beverages raises $2M from former senior managing director at Helion, others

Delhi-based Indulge Beverages Pvt Ltd, which makes and sells tea and coffee ‘capsules’ under the Bonhomia brand, has raised $2 million (Rs 12.5 crore) from a group of angel investors led by co-founder and former senior managing director of Helion Venture Partners, Kanwaljit Singh, the company said on Thursday.

The other investors who participated in the round included Ashok Dhingra, former director of strategic initiatives at SAB Miller; real estate group scion Apurva Salarpuria of Salarpuria Group; Shripad Nadkarni, former marketing head at Coca Cola India and currently director at MarketGate Consulting; Sarvesh Shahra, business head (foods) at Ruchi Soya Industries; Anand Morzaria, CEO at Pennywise Solutions Pvt Ltd; Alok Rawat & family (Dubai-based serial angel investor); Ramrod Advisors; Gidwani family (Mumbai-based angel investor and Nitesh Kripalani (INSEAD Alumnus).

Singh would represent these angel investors on Indulge Beverages’ board. Commenting on the investment, Singh said, “Bonhomia is delivering on a strong emerging consumer trend in India. I also see a great potential for the company to build a global brand, especially with the range of Indian origin tea flavours.”

The three-year-old startup will use the proceeds towards marketing its products as well as developing newer blends of beverages. It is also planning to launch 8-12 blends in the current financial year and also augment its online and offline presence.

Founded by former merchant banker Kunal Bhagat along with a former executive of Pepsico, Tuhin Jain, in January 2012, Indulge Beverages says it sources coffee from the estates in South India and roasts, grounds and encapsulates them in less than 24 hours.

Its own brand Bonhomia was launched in March 2014 as a premium Indian origin tea and coffee capsules, which are compatible with Nespresso machines.

At present, it sells its products through e-commerce platforms such as Fabmart and Snapdeal. On the other side, for the offline channel it has partnered with Modern Bazaar, Foodhall and Godrej Nature’s Basket among others. Its offline store presence is currently limited to Delhi, Mumbai, Bangalore, Pune and Hyderabad.

The company had scaled up its pod capacity from 1 million capsules to 20 million capsules in the last six months.

“We are well placed in terms of our reach in the B2B and B2C space. This infusion of capital combined with the industry expertise brought in by the distinguished team of investors will help us expand our geographic presence as well as product range,” Tuhin Jain, co-founder and CMO, Indulge Beverages, said.

The firm estimates that the global market for Nespresso format is estimated to be over $10 billion, of which India represents a mere 0.33 per cent with the market size of just Rs 200 crore.


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1.1. The Petroleum & Natural Gas Regulatory Board (PNGRB) is the regulator for various matters including the regulation of cross-country gas pipelines in India.
1.2. Cross-country gas pipelines serve the purpose of transporting domestic gas from source fields to consumers as well as imported regasified LNG (R-LNG) from LNG terminals to the consumers.
1.3. Gas pipelines have been put up by different companies such as GAIL, IOC, GSPL and others over time under approval from PNGRB and the tariff they charge from shippers of gas is fixed by PNGRB based on the Capex and Opex incurred by such companies on the pipelines duly vetted by PNGRB, so as to provide a reasonable return to such companies. This tariff is referred to as ‘Approved Tariff’ and is paid by the user/shipper to the Gas pipeline owner.
1.4. The Gas Pipeline owner charges the Approved Tariff from shippers on actual quantity (per MMBTU) shipped or in case of minimum ‘ship or pay’ commitments, where actual quantity shipped is less than the minimum commitment, then on the minimum committed volume.
1.5. Figure below provides the Gas infrastructure in India in terms of Gas pipelines and LNG terminals.

1.6. It has long been debated to move towards a ‘National Gas Grid’ concept wherein all the pipelines form part of a common grid accessible to all users/shippers no matter where they originate the gas and where they wish to have the gas delivered to them. This is envisaged with a unified tariff payable for shipping of gas. This is in consonance with the Government of India’s plans for increasing share of Gas in Indian economy’s energy basket from 6% to 15% and having a gas exchange with prices quoted for transacting gas contracts at different delivery points without the complication of determining which pipelines will transport the gas to the delivery point and at what tariff.
1.7. Accordingly on 23rd November 2020, the PNGRB has notified the Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Second Amendment Regulations, 2020 bringing forth the Unified Tariff guidelines for implementation (UTP Regulations).

2.1. The UTP Regulations seek to deal with following main aspects:
2.1.1. Determination of Unified Tariff for the National Gas Grid;
2.1.2. Streamlining the invoicing and payment mechanism for shipping charges; and
2.1.3. Inter-se settlement of shipping charges collected between Gas pipeline owners.
2.2. The broad philosophy adopted by the PNGRB in implementing the above is:
2.2.1. That the user deals with one pipeline entity and not with multiple. One pipeline entity invoices the user as per UTP and thereafter defrays the amounts so collected to all pipeline owners whose pipelines have been used by the user for transportation from entry point till exit point.
2.2.2. The Approved Tariff for all pipeline owners, as promised to them for reasonable returns on their investment is to be protected and all owners get the Approved Tariff on the volumes transported on their pipeline. Thus the UTP mechanism is not intended to redefine the revenues of Gas pipeline owners.
2.2.3. There is inter se settlement between the pipeline owners duly mediated by the PNGRB.
2.2.4. After implementation of the UTP Regulations for the initial period of six months, the PNGRB shall consider suggestions and feedback and suitably modify the regulations to address any working issues or modalities.

3.1. The UTP shall be determined by the PNGRB for a financial year at a time. Right has been reserved by PNGRB to also revise UTP mid-year in case of circumstances such as need for rectification or addition of pipeline to National Gas Grid mid-year etc.
3.2. The UTP shall be determined for the entire National Gas grid as a single tariff and shall be further sub-divided into two zones – Zone 1: tariff payable for transportation of gas upto 300 kilometers from point of origin to point of exit and Zone 2: tariff payable for transportation of gas beyond 300 kilometers.
3.3. The UTP for Zone 1 shall be 40% of UTP for Zone 2. For example: If PNGRB determines the UTP for pan India National Grid as Rs. 70 per MMBTU, then this shall be split between Zone 1 and Zone 2 such that Zone 1 UTP is 40% of Zone 2 UTP. Thus in this case the Zone 1 UTP would be Rs. 20 per MMBTU and Zone 2 UTP will be Rs. 50 per MMBTU.
3.4. The UTP for the National Gas Grid will be determined by the PNGRB by applying the following formula (in simplified terms):
UTP = Sum of (Approved Tariffs X Estimated Volumes) for each pipeline forming part of the National Grid + Adjustment Factor Divided by Sum of Estimated Volumes for each of the pipelines forming part of the National Grid – Duplicate volumes
3.5. Thus the UTP is not a unique price determined by the PNGRB considering market dynamics but is simply the weighted average of the Approved Tariff expected to be earned by all the pipelines.
3.6. The Adjustment Factor is a variable retained by the PNGRB in the formula to put in an amount it expects to normalize the UTP in case there is under recovery or over recovery of the Approved Tariffs by the pipeline companies owing to under or over estimation of expected volumes versus actual volumes.
3.7. Duplicate volumes are volumes counted twice in reckoning gas expected to be transported from one point of origin to another. For example in case of gas being transported from Dahej by IOC to its Panipat refinery, the volumes would be considered in GAIL pipeline and IOC Dadri Panipat pipeline as well. This would lead to double counting and thus the duplication needs to be excluded when determining the total volume of gas.
3.8. For determination of the UTP, the UTP Regulations provide that each of the owners of the pipelines shall periodically furnish information of the estimated and actual volumes transported by their pipelines with reasons for variance. Formats for submission of information have been prescribed in the UTP Regulations.
3.9. Example illustrating computation of UTP:

Pipeline Approved Tariff (Rs/MMBTU) Estimated Volume (MMBTU) Expected Revenue (Rs)
1 85 1000 85,000
2 60 1500 90,000
3 70 1500 1,05,000
Total 4,000 2,80,000

Thus in the above case the UTP shall be 2,80,000/4,000 = Rs. 70 per mmbtu.
For Zone 1 it will be Rs. 20 per MMBTU and for Zone 2 it will be Rs. 50 per MMBTU.

4.1. Once the UTP has been determined and declared by the PNGRB for the financial year, the pipeline entities shall invoice the user as per the UTP.
4.2. The ‘Invoicing Entity’ shall be the entity where the customer takes delivery of gas, i.e. the entity owning the pipeline at exit point. It shall invoice the user on the delivered gas volume at the exit point as per the UTP applicable for Zone 1 or Zone 2 as per the distance between origin point of gas of the User and exit point.
4.3. Once the Invoicing Entity has collected the charges, it will be liable to defray the share of the charges to the other pipeline owners whose pipeline has been used by such user between the entry point and exit point.
4.4. Thus, for example, where a user lands a cargo of LNG at Petronet terminal at Dahej and uses the GAIL pipeline from Dahej to Dadri and then IOC pipeline from Dadri to Panipat, in such as case the invoicing entity shall be IOC as the exit point is as at IOC pipeline. IOC will invoice UTP of Zone 2 as the distance transported is more than 300 kms and IOC will then be liable to settle with GAIL the amount collected on behalf of GAIL.
4.5. The inter se settlement will take place between all gas pipeline owners with their preparing a statement of total amount collected by them and the amount they are entitled to as per Approved Tariff for their pipeline and volume transported via their pipelines. Net amount payable/receivable by them to each other will be reconciled and settled.
4.6. In case of any disputes, the same shall be settled by PNGRB.

From a business and gas infrastructure perspective, these UTP regulations have a far reaching implication for all entities involved. Some of the implications as analysed are:

5.1.1. For the Users/shippers of gas using the cross-country pipelines, this is a welcome step as it brings transparency in the tariff to be paid by them for transportation.
5.1.2. It further brings ease of doing business as the user will deal with only a single invoicing entity and will not need to pay multiple invoices for each stretch of the pipeline they use from entry point to exit point to different owners of such stretches.
5.1.3. As the UTP would be further divided into UTP for Zone 1 and Zone 2, the User can plan its gas movement from source to destination based on the model which most economizes its landed cost of the gas at destination. For example a user requiring gas at Jagdishpur would be able to compare whether to land it at Hazira and transport via Hazira – Vijaipur – Jagdishpur pipeline or to land it at Dhamra and transport via Dhamra – Haldia – Jagdishpur pipeline by considering regasification charges of Shell Hazira terminal and Dhamra terminal as well as UTP applicable from both sources.

5.2.1. The UTP guidelines are largely intended to be revenue neutral for the gas pipeline owners. These companies, such as GAIL who have established gas pipelines have an approved tariff which has been approved by PNGRB by considering their Capex, Opex and reasonable return on investment. The UTP guidelines do not disrupt the
approved tariff and provide that the UTP based amounts collected by invoicing entities would be distributed between the pipeline owners based on their revenue entitlement as per Approved Tariff.
5.2.2. From a volume perspective the guidelines would be positive for the pipeline owners who have more pipelines connecting the source to destination within 300 kms as opposed to a pipeline which is longer and falling in Zone 2. For example if IOC is looking to move gas to its refinery in Haldia, it will prefer to use the source point and pipeline which falls within 300 kms (say Dhamra to Haldia) than more than 300 kms (say Dahej to Haldia).

5.3.1. The major implication of the UTP guidelines would be for the developers of LNG terminals (on-land and FSRUs). In signing up users for their regasification capacity, the LNG terminal would now have to compete on tariff with other LNG terminals as the user would evaluate the regasification charge + pipeline tariff to determine the most economical option for it to land the gas at the domestic consumption point.
5.3.2. For example, a user having gas requirement in Bangalore will evaluate whether it is cheaper to land gas from Kochi (Petronet) to Bangalore or Ennore to Bangalore considering the regasification charges at the terminal and the pipeline tariff.
5.3.3. The regasification charges at terminals will largely get levelized between terminals located in geographical vicinity of each other as an outcome of the UTP and it will not be sustainable for Kochi to charge Rs. 90 per mmbtu while Ennore charges Rs. 60 per mmbtu (for example).
5.3.4. However, Ennore would not necessarily have to compete with a Dahej since its addressable market i.e. south India would fall in zone 1 for Ennore origin point while it would fall in Zone 2 for Dahej as an origin point. Thus the differential in UTP between zone 1 and zone 2 would negate the lower tariff of Dahej versus Ennore.

All in all the UTP guidelines are a step in the right direction and should lead to faster adoption of gas across the country. Greater transparency in the pipeline charges and availability of regas capacity with new terminals coming up will yield options to users which will translate to direct imports of LNG by users and higher transactions on gas exchange for delivery at specified points. Gradually gas will become a readily accessible commodity for large users through direct access from international markets as opposed to having to go through state companies. For smaller users the gas exchange will become a transparent and seamless way of buying gas rather than having to negotiate lengthy GSPAs with large gas sellers.
It is a bold and decisive step, taken by Mr. D. K. Sarraf as a parting gift to the Indian Oil & Gas industry, having been one of the most proactive Chairman of the PNGRB ever since the inception of the regulatory body.

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