What is a lpg cylinder filling project report?
An LPG cylinder filling plant project report is a detailed project report (DPR) for a unit that fills bulk LPG into BIS-marked cylinders for sale. The plant receives LPG by road tanker and stores it in pressure vessels. The report covers PESO licences, filling and safety equipment, project cost, means of finance, five-year projections, DSCR and break-even.
Private LPG marketers, gas distributors and industrial groups use it to plan the plant and apply for a term loan; banks use it to test whether the unit can repay.
Also known as: LPG bottling plant project report, gas filling LPG cylinder project report, LPG refilling plant project report, LPG bottling plant business plan.
LPG cylinder filling plant cost in India
Our sample report models a private filling plant of 9.2 MT per day, or 3,036 MT a year, equal to roughly 480 commercial 19 kg cylinders a day. It runs 330 days a year, starts at 60% of capacity and reaches 80% in Year 5.
Filled LPG is priced at ₹1,23,000 per MT ex-GST, which is ₹123 per kg. Bulk LPG makes up 95% of raw material cost, so the margin between buying and selling gas decides the plant's profit.
| Land and site development | 89.28 |
|---|---|
| Building and civil works | 220.12 |
| Plant and machinery | 444.41 |
| Other fixed assets | 47.69 |
| Contingencies | 33.23 |
| Preliminary and pre-operative | 20.87 |
| Working capital margin | 93.52 |
| Total | 949.12 |
| Promoter's contribution (25%) | 237.28 |
|---|---|
| Term loan from bank (75%) | 711.84 |
| Cash credit limit (separate) | 280.57 |
| Total project cost | 949.12 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. The lowest yearly DSCR in the sample is 1.37. All figures are illustrative.
LPG cylinder filling process, step by step
A filling plant does not change the gas. Its job is to put the declared weight of LPG into a sound cylinder and prove that nothing leaks before the cylinder leaves the gate.
- Tanker unloading
Bulk LPG road tankers are emptied into the storage bullets with a vapour compressor and LPG pump.
- Empty cylinder inspection
Returned cylinders are checked for the test due date stamped on them, dents, corrosion and valve condition. Unfit cylinders are pulled out before filling.
- Filling
Electronic filling machines or a carousel fill each cylinder to its set net weight. Machines must cut off automatically, and filling pressure stays at or below 16.9 kg/cm²g.
- Check weighing
Every filled cylinder crosses an on-line check scale with a least count of 50 g. Under or over filled cylinders go back for correction.
- Leak testing
The valve and O-ring are tested with an electronic detector or compact valve tester. The body and bung are checked in a water test bath or by detector.
- Evacuation of rejects
Leaking cylinders that cannot be corrected are emptied in an evacuation unit before valve change, repair or scrapping.
- Sealing and dispatch
Passed cylinders get a safety cap and tamper-proof seal and move to the filled cylinder shed, kept apart from the filling machines.
Design rules for a small LPG bottling plant
The PNGRB safety standard for LPG storage, handling and bottling sets the layout and equipment a lender's engineer will look for. A plant of our sample's size falls in the small-plant group.
| Small plant (Schedule 2) | Storage up to 100 MT and bottling up to 20 MT per day. Larger plants come under the stricter Schedule 1 |
|---|---|
| OISD standard | PESO expects small bottling plants to follow OISD 169 and large-capacity plants OISD 144 |
| Filling shed | Single storey, open-sided and covered, with no RCC roof and antistatic mastic flooring |
| Separate sheds | Filled cylinder storage, valve changing and degassing each need their own shed |
| Filling machines | Automatic cut-off on every machine; a carousel needs PESO type approval; vapour extraction must run before filling can start |
| Storage vessels | High-level alarm set at no more than 85% of volumetric capacity, and two safety relief valves on each vessel |
A summary for planning only. The final design must follow the full regulations and the layout PESO approves.
Raw materials: bulk LPG is almost the whole bill
In our sample, raw materials are 64.7% of sales, and bulk LPG, a mix of propane and butane, is 95% of that. The other items are consumables used on each cylinder.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Bulk LPG (propane and butane mix) | 95% | 1,607.39 |
| Valve O-rings and spares | 2% | 33.84 |
| Tamper-proof seals and safety caps | 1.5% | 25.38 |
| Cylinder paint and marking | 1.5% | 25.38 |
| Total | 100% | 1,691.99 |
Bulk LPG prices follow international propane and butane prices and change every month. Your report should use a written supply arrangement, not a spot quote.
Machinery and safety equipment for an LPG filling plant
Storage bullets are the largest item in the sample at ₹106.66 lakh, followed by the initial stock of cylinders at ₹88.88 lakh. Fire and gas safety equipment is a large share, not an extra.
| Equipment | What it does | Sample cost (₹ lakh) |
|---|---|---|
| LPG storage bullets with fittings | Hold bulk LPG under pressure | 106.66 |
| LPG cylinders, initial stock | The plant's own cylinders in circulation | 88.88 |
| Electronic filling machines or carousel | Fill cylinders to set weight | 71.11 |
| Fire water pumps, hydrants and sprinklers | Cool vessels and sheds in a fire | 48.89 |
| LPG pumps, vapour compressor, tanker unloading | Move gas from tanker to bullet to filling shed | 35.55 |
| Check scales, valve tester, leak test bath | Prove weight and tightness | 26.66 |
| Chain conveyors and electrical panels | Carry cylinders through the shed | 26.66 |
| Evacuation, valve changing, degassing units | Empty and repair rejected cylinders | 22.22 |
| Gas monitoring system and interlocks | Detect leaks and stop operations | 17.78 |
| Total plant and machinery | 444.41 | |
Costs are the sample report's estimates for a 9.2 MT per day plant. Get current quotations before you finalise.
PESO licences and approvals for an LPG cylinder filling plant
PESO approves the layout first and issues each licence only after it inspects the finished plant. Applications go through the National Single Window Portal.
| LPG storage vessels | Licence in Form LS-1A under the SMPV(U) Rules 2016 for pressure vessels above 1,000 litres water capacity |
|---|---|
| Cylinder filling | Licence in Form E under the Gas Cylinders Rules 2016, with a fee of ₹5,000 for each gas filled |
| Filled cylinder storage | Licence in Form F for the filled cylinder shed, with the fee set by the quantity stored |
| District Authority NOC | Apply with two copies of the site plan; PESO does not grant the licence over the District Authority's objection |
| Parallel marketer | Intimate the Ministry of Petroleum and Natural Gas and obtain a rating certificate before bottling or selling (LPG Control Order 2000, clauses 11 and 12) |
| Cylinders | Built to IS 3196 (Part 1), with a valve guard ring shaped differently from oil company cylinders and your own colour band and logo |
| State approvals | Consent to establish and operate from the State Pollution Control Board, fire NOC and factory licence |
| GST | 5% on LPG for household domestic consumers; 18% on other LPG, such as commercial cylinders |
Market for an LPG cylinder filling business
A private plant sells against oil company commercial cylinders, and that price is reset every month. Buyers stay with a private brand for assured supply, prompt delivery and credit on regular orders.
Bulk LPG and filled cylinders are costly to move, so most plants serve buyers within their own region through a few appointed distributors.
- Hotels, restaurants and caterers
- Factories using LPG for furnaces, heat treatment and drying
- Institutional kitchens and canteens
- Appointed distributors of the bottler's brand
- Households in areas the brand serves
Plan for price swings: in Delhi a 19 kg commercial cylinder cost ₹1,691.50 on 1 January 2026, ₹3,071.50 on 1 May and ₹2,738 on 1 August. Bulk LPG costs move the same way, so judge the plant on its margin per kg.
Mistakes that weaken an LPG cylinder filling plant project report
- Pricing on one month's cylinder rate
Commercial LPG prices moved by more than 80% in four months in 2026. Test sales and DSCR at low and high prices, with bulk LPG cost moving alongside.
- No firm source of bulk LPG
A plant without a written supply arrangement is idle capacity. Lenders ask where the gas will come from before they look at the projections.
- Counting only one day's cylinders
Most cylinders sit with distributors and customers at any time. The cylinder bank must be far larger than one day's filling, and it ties up capital.
- Building before PESO approval
PESO approves the layout first, and changes later need fresh approval. A shed built to the wrong distances may have to be rebuilt.
- Ignoring cylinder test dates
Every cylinder carries a test date and needs periodic inspection under IS 16054. Rejections, repairs and replacements belong in the running cost.
How NPCS helps you plan an LPG cylinder filling plant
- Capacity and cylinder mixSize storage, daily filling and the cylinder bank for 19 kg, 47.5 kg and domestic sizes in your market.
- Plant layout and equipmentEquipment list and layout planned around PNGRB and PESO distance rules before you buy land.
- Bank-ready project reportProjections, DSCR and price sensitivity on bulk LPG margin, in the format your lender wants.
- Approvals roadmapThe PESO, District Authority, Ministry and state approvals in the order they are needed.
NPCS has prepared project reports and feasibility studies since 1994, with 116 assignments in metal products on its client list, for entrepreneurs, banks and companies in India and abroad.
What's inside the lpg cylinder filling sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
18 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
Find NPCS project reports in your budget
What clients say about NPCS
4.7
264 Google reviews, as of 20 Oct 2026
Clients most often mention
- feasibility reports 18
- project report 16
- helpful for startups 15
- detailed reports 8
-
Excellent experience with Niir Project Consultancy Services. Their Techno-Economic Feasibility Reports are incredibly detailed and backed by solid market data.
Piyush Singh, Google review, 2026
-
Niir Project Consultancy Services offers excellent guidance for business setup. Their market survey and feasibility reports saved us a lot of time and helped us make informed decisions. Highly recommended
Saroj Yadav, Google review, 2026 View on Google
-
In an era of information overload, NIIR stands out for its precision. Their technical consultancy and market feasibility studies are world-class.
Shrishti Gautam, Google review, 2026
-
NIIR Project Consultancy Services provides useful books and reports for students, entrepreneurs, and small businesses. Their content is easy to understand and focuses on practical ideas for starting and managing industries. Overall, NIIR is helpful for learning about business and project planning.
Raj Yadav, Google review, 2026
LPG Cylinder Filling project report: frequently asked questions
How much does it cost to set up an LPG cylinder filling plant in India?
Our sample report models a 9.2 MT per day private filling plant at ₹949 lakh. Plant and machinery is ₹444 lakh of that, covering storage bullets, filling machines, fire protection and an initial stock of cylinders. Your cost depends mainly on storage size, daily filling capacity, land and how many cylinders you put into circulation. A project report works this out for your site.
Which licences are needed for an LPG bottling plant?
PESO grants the main licences. Form LS-1A under the SMPV(U) Rules 2016 covers the storage vessels, and Forms E and F under the Gas Cylinders Rules 2016 cover filling and storing cylinders. You also need a District Authority NOC, intimation to the Ministry of Petroleum and Natural Gas as a parallel marketer, pollution consent and fire approval.
Can a private company fill and sell LPG cylinders in India?
Yes, under the parallel marketing system of the LPG Control Order 2000. A private marketer must inform the Ministry of Petroleum and Natural Gas before it starts bottling or selling, and hold a rating certificate. Its BIS cylinders need its own colour band and a valve guard shaped differently from oil company cylinders. Filling needs PESO authorisation.
Is an LPG filling plant the same as a gas agency?
No. A gas agency is a distributor that delivers cylinders already filled by an oil company plant. A filling plant receives bulk LPG, stores it in pressure vessels and fills cylinders itself. It needs PESO storage and filling licences, a much larger site and an investment in tanks, filling machines, fire protection and cylinders.
Is the LPG cylinder filling business profitable?
In our illustrative sample, a 9.2 MT per day plant earns ₹167 lakh net profit in Year 3 on sales of ₹2,614 lakh. That is an 18% return on investment, with break-even at 44% of capacity. Real profit depends on the gap between your bulk LPG cost and selling price, cylinder turnaround, freight and buyer credit.
What GST applies to LPG sold in cylinders?
As of October 2026, LPG supplied to household domestic consumers attracts 5% GST, and other LPG, such as commercial and industrial cylinders, attracts 18%, under CBIC Notification 9/2025. The rate depends on who the buyer is, so a project report should split sales by customer type before working out tax and pricing.
LPG filling plant ka business kaise shuru kare?
Start by fixing a source of bulk LPG and a site that meets PESO safety distances. Then get a project report made, take PESO prior approval of the layout, inform the Ministry of Petroleum and Natural Gas as a parallel marketer, and apply for the loan. Build only after approval; PESO issues the licence after inspection.
Is the sample report free and can I use it for a loan?
The sample is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report. Its figures are representative and not based on a real project, so do not submit it to a bank. For a loan, NPCS prepares a report for your own capacity, site and lender.
Sources and references
- SOP for licensing under the SMPV(U) Rules, 2016Petroleum and Explosives Safety Organisation (PESO), checked Oct 2026
- SOP for licensing under the Gas Cylinders Rules, 2016Petroleum and Explosives Safety Organisation (PESO), checked Oct 2026
- FAQs on the SMPV(U) Rules, 2016Petroleum and Explosives Safety Organisation (PESO), checked Oct 2026
- T4S Regulations for LPG storage, handling and bottling facilities (as amended July 2025)Petroleum and Natural Gas Regulatory Board, checked Oct 2026
- Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000Ministry of Petroleum and Natural Gas, checked Oct 2026
- LPG marketing: orders and notificationsMinistry of Petroleum and Natural Gas, checked Oct 2026
- IS 3196 (Part 1): 2013, welded low carbon steel cylinders for LPGBureau of Indian Standards, checked Oct 2026
- Notification No. 9/2025-Integrated Tax (Rate)Central Board of Indirect Taxes and Customs, checked Oct 2026
- Commercial LPG cylinder prices up by Rs 111 in metro cities (1 January 2026)All India Radio News, checked Oct 2026
- Commercial LPG cylinder prices hiked by Rs 993 (1 May 2026)All India Radio News, checked Oct 2026
- Oil marketing companies reduce commercial LPG prices (1 August 2026)All India Radio News, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.