What is a freon gases for refrigeration project report?
A freon gases for refrigeration plant project report is a detailed project report (DPR) for a unit that blends bulk HFC refrigerants into grades such as R-410A and fills them into cylinders and cans. It sets out the process, equipment, approvals, project cost, finance, five-year projections and DSCR that a lender reviews.
Gas distributors, chemical companies and first-time promoters use it to size the plant and raise a term loan; bankers use it to judge whether the unit can repay.
Also known as: refrigerant gas plant project report, project report on freon gases for refrigeration, refrigerant gas blending and filling plant DPR, AC gas filling plant business plan.
Freon gases for refrigeration plant cost and economics
Our sample report models a plant that blends and fills 2,400 kg of refrigerant a day, or 7,92,000 kg a year at full capacity. It runs 330 days a year, starts at 60% capacity and reaches 80% in Year 5, with an average selling price of ₹630 per kg before GST.
The economics are those of a thin-margin, high-turnover business. Bulk gas takes 58.3% of sales, so the plant earns its money on blend accuracy, net weight and volume rather than on a high mark-up.
| Land and site development | 83.05 |
|---|---|
| Building and civil works | 262.45 |
| Plant and machinery | 540.35 |
| Other fixed assets | 86.02 |
| Contingencies | 40.14 |
| Preliminary and pre-operative | 25.30 |
| Working capital margin | 118.17 |
| Total | 1,155.48 |
| Promoter's contribution (25%) | 288.87 |
|---|---|
| Term loan from bank (75%) | 866.61 |
| Cash credit limit (separate) | 354.51 |
| Total project cost | 1,155.48 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. All figures are illustrative.
Freon gas manufacturing process: blending and filling
A blending plant does not run a chemical reaction. It turns single-component HFCs into finished grades by weight, then packs them so that every cylinder carries the declared gas and net weight.
- Bulk receipt and sampling
HFCs arrive in ISO tanks or one-tonne containers; each lot is sampled before it is transferred to a storage vessel.
- Incoming analysis
A gas chromatograph checks purity, and the lab tests moisture, acidity and non-condensable gases, since water and air damage compressors.
- Cylinder preparation
Returnable cylinders are checked for their test date and valve condition, then heated and pulled to vacuum to remove moisture and air.
- Gravimetric blending
Components are charged by weight into a blend vessel: R-410A is 50% HFC-32 and 50% HFC-125, R-407C is 23% HFC-32, 25% HFC-125 and 52% HFC-134a.
- Liquid-phase filling
Blends leave the vessel as liquid, because drawing vapour from a zeotropic blend shifts its composition; each cylinder sits on a load cell while it fills.
- Leak test and batch release
Filled cylinders are leak tested and a sample of each blend batch is analysed before the batch is released.
- Labelling and storage
Cylinders are capped and labelled with the R-number, net weight and batch, then kept upright in a shaded, ventilated shed.
Which type of freon gas plant should you set up?
"Freon plant" can mean four very different businesses. Pick the type first, because it sets the investment, the approvals and whether the project is allowed at all after 2027.
| Filling and repacking | Decants bought gas from ISO tanks or 60 kg cylinders into 5–13 kg cylinders and 450 g cans. Lowest entry cost, indicatively ₹1.5–5 crore, but the margin is mainly packing and distribution. |
|---|---|
| Blending and filling (our sample) | Makes R-410A, R-407C, R-404A and similar grades from single HFCs, and fills them. Needs a blend vessel, mass flow metering and a gas chromatograph. Modelled at ₹1,155.48 lakh for 2,400 kg per day. |
| Recovery and reclamation | Recovers used gas from scrapped or serviced equipment and cleans it back to specification. Fits the servicing market as HFC supply tightens; needs distillation or filter-drier skids and strict testing. |
| HFC synthesis | Reacts hydrogen fluoride with chlorinated feedstock to make HFC-32 or HFC-134a. Indicatively ₹100 crore or more, and no environmental clearance is granted for new HFC production capacity beyond 31 December 2027. |
Why the sample is a blending plant: India freezes HFC production at 2028 levels, so new synthesis capacity has a closing window. A blending and filling plant works with gas bought from licensed producers or importers and suits most first-time promoters.
Bulk gases a refrigerant blending plant buys
HFC-32 is the biggest purchase because it is sold straight for split air conditioners and is half of R-410A. HFC-143a is used mainly in R-404A for commercial refrigeration, so its share depends on how much cold-chain business you win.
| Bulk refrigerant | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Difluoromethane (HFC-32) | 42% | 855.68 |
| Pentafluoroethane (HFC-125) | 24% | 488.96 |
| Tetrafluoroethane (HFC-134a) | 26% | 529.71 |
| Trifluoroethane (HFC-143a) | 8% | 162.99 |
| Total | 100% | 2,037.34 |
Cylinders, valves, cans and labels are costed separately as packing, at 4.9% of sales in the sample.
Machinery for a refrigerant gas filling plant
Storage is the largest item. The plant must hold several grades under pressure at once, and ISO tank unloading needs its own bay with transfer lines and weighing.
| Equipment | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Bulk storage vessels and ISO tank bay | Holds each HFC under pressure | 118.88 |
| Transfer pumps and recovery compressors | Move liquid and recover vapour | 64.84 |
| Gravimetric blending system | Doses components by mass | 97.26 |
| Cylinder and can filling machines | Fill to net weight on load cells | 75.65 |
| Vacuum pumps and heating station | Dry and evacuate cylinders | 32.42 |
| Gas chromatograph and moisture analyser | Purity and blend checks | 54.04 |
| Leak and hydrostatic test equipment | Leak checks and cylinder retesting | 43.23 |
| Piping, valves, gas detectors, safety | Closed transfer and alarms | 54.03 |
| Total plant and machinery | 540.35 | |
Costs are the sample report's estimates for a 2,400 kg per day plant. Get current quotations before you finalise.
Licences and rules for a refrigerant gas plant
Refrigerant plants answer to three sets of rules: gas cylinder safety, ozone and climate controls, and product quality. These were checked against official sources in October 2026.
| Cylinder filling and storage | PESO licence to fill gas into cylinders and a licence to store filled cylinders, under the Gas Cylinders Rules, 2016; the fee is charged for each type of gas filled |
|---|---|
| Cylinders and valves | Only cylinders of a PESO-approved design; converting a cylinder to a different gas needs approval |
| Product standard | IS 5610:2025, the BIS specification for refrigerants, with sampling and test methods |
| Handling code | IS 15548:2025, code of safety for HFC-134a |
| HCFC-22 (R-22) | Controlled under the Ozone Depleting Substances (Regulation and Control) Rules, 2000; complete HCFC phase-out targeted by 2030 |
| HFC synthesis | Environmental clearance under item 5(f) of the EIA Notification, 2006; none for new HFC production capacity beyond 31 December 2027 (MoEFCC memorandum, 1 April 2026) |
| Pollution and safety | State Pollution Control Board consent to establish and operate, factory licence and fire NOC |
Rules and categories vary by state. Confirm the current position with PESO and your State Pollution Control Board before you apply.
Market for refrigerant gases under the HFC phase-down
Most of a blender's volume goes to servicing. Every room AC, refrigerator, car AC and cold room in use needs top-ups and recharges, and orders build up before summer as technicians stock up.
From 2028, supply is capped by law. Under the Kigali Amendment, India freezes HFC production and consumption from 1 January 2028 against a baseline of the 2024–2026 average plus 65% of HCFC-22 use in 2009–2010. Cuts of 10% follow in 2032, 20% in 2037, 30% in 2042 and 85% in 2047.
- Refrigerant distributors and HVAC spare-part dealers
- AC and refrigerator service companies
- Car AC workshops, mostly for HFC-134a cans
- Cold storage and commercial refrigeration contractors, for R-404A
- Equipment makers that charge gas at the factory
Where a new plant wins: once quotas apply, the plant with assured bulk supply and a recovery and reclamation line can keep selling while others run short. Lock in supply contracts before you lock in capacity.
Mistakes that weaken a freon gases for refrigeration plant project report
- Pricing from marketplace listings
Online prices mix 450 g cans with 60 kg cylinders and retail with bulk. Sales must use ex-factory rates to distributors, or DSCR is overstated.
- Leaving out the cylinder float
Returnable cylinders sit with distributors for weeks. A report that ignores this stock of cylinders under-states both capital cost and working capital.
- Filling blends as vapour
R-407C and R-404A separate if drawn as vapour, and off-spec gas brings complaints and returns. The process and equipment must show liquid-phase filling.
- Treating R-32 like a non-flammable gas
HFC-32 is mildly flammable. Flameproof electricals, gas detection and storage distances add cost that many estimates miss.
- Assuming bulk HFC supply grows freely
From 2028 supply follows the HFC freeze. A plan without supply contracts or a reclaimed-gas stream rests on an uncertain base.
How NPCS helps you plan a refrigerant gas plant
- Plant type and gas mixChoose between filling, blending, reclamation or a mix, and the grades to carry for your region.
- Equipment and suppliersSize storage, blending and filling lines and compare quotations for each.
- Bank-ready project reportProjections, DSCR, cylinder float and working capital in the format your lender uses.
- Approvals and layoutPESO licences, storage distances, hazardous-area zones and the state approvals list.
NPCS, led by founder Ajay Kumar Gupta, has prepared reports for specialty chemical and gas units since 1994. Its client list includes 269 assignments in specialty chemicals and one for this product.
What's inside the freon gases for refrigeration 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 |
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Freon Gases for Refrigeration project report: frequently asked questions
What is the cost of a freon gas manufacturing plant in India?
It depends on the plant type. A filling and repacking unit is indicatively ₹1.5–5 crore, while a blending and filling plant like our sample costs ₹1,155 lakh for 2,400 kg per day. A plant that synthesises HFC-32 or HFC-134a from hydrogen fluoride typically needs ₹100 crore or more. These are indicative figures; your report works out the cost for your capacity and site.
Can a new unit make R-22 refrigerant in India?
Not as a new business. R-22 is HCFC-22, an ozone-depleting gas controlled under the Ozone Depleting Substances Rules, and India is phasing HCFCs out completely by 2030 under its HCFC Phase-out Management Plan. A new plant should be planned around HFCs, HFC blends and lower-GWP gases such as HFOs, and treat R-22 only as a shrinking servicing product.
What raw materials does a refrigerant blending plant need?
Single-component HFCs bought in bulk: HFC-32, HFC-125, HFC-134a and HFC-143a. In our sample report HFC-32 is the largest at 42% of raw material cost, followed by HFC-134a at 26%. Cylinders, valves, cans and labels are packing costs. Most units buy from Indian fluorochemical producers or import in ISO tanks.
Is a refrigerant gas plant profitable?
In our illustrative sample, a 2,400 kg per day blending and filling plant earns an 18% return on investment in Year 3. It breaks even at about 47% of capacity and pays back in about 4 years. Margins are thin because bulk gas is 58.3% of sales, so profit depends on buying contracts, blend accuracy and distributor credit.
Which licence is needed to fill refrigerant gas cylinders?
Filling gas into cylinders and storing filled cylinders need licences from PESO under the Gas Cylinders Rules, 2016, with a fee charged for each type of gas filled. Cylinders and valves must be of an approved design. You also need pollution board consent, a factory licence and a fire NOC, and your gas should meet IS 5610:2025.
What is the difference between Freon and R-32?
Freon is a trade name that became the everyday word for fluorocarbon refrigerants, much as people call any AC gas freon. R-32 is one specific gas, difluoromethane (HFC-32), used in most new split air conditioners in India. It is mildly flammable, so filling and storing it needs flameproof electricals and gas detection.
Is the sample report free and can I use it for a loan?
The sample is free to view and download. It shows the format and depth of an NPCS report, but its figures are representative and not from a real project. Do not submit it to a bank. For a loan, NPCS prepares a report for your own capacity, gas mix, location and lender.
Sources and references
- Office memorandum on restriction for production of hydrofluorocarbons (HFCs) while granting environmental clearance, 1 April 2026Ministry of Environment, Forest and Climate Change (IA Division), checked Oct 2026
- Cabinet approval of India's position at the Kigali Meeting of PartiesPrime Minister's Office, Government of India, checked Oct 2026
- Request for proposal, newsTRAC newsletter for RAC service technicians (HPMP Stage III)Ozone Cell, Ministry of Environment, Forest and Climate Change, checked Oct 2026
- Explainer on India's phase-out of ozone depleting substances, January 2025Mongabay India, checked Oct 2026
- Standard operating procedure, Gas Cylinders Rules 2016Petroleum and Explosives Safety Organisation (PESO), checked Oct 2026
- FAQ on Gas Cylinders RulesPetroleum and Explosives Safety Organisation (PESO), checked Oct 2026
- IS 5610 refrigerants specification (1993 edition superseded by IS 5610:2025)Bureau of Indian Standards, checked Oct 2026
- IS 15548:2025 Hydrofluorocarbon (HFC-134a), code of safetyBureau of Indian Standards, 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.