IndianOil-AGPL investing Rs 4500 crores in CGD projects
The company would set up more than 450 CNG stations to cater to the transportation sector. It has invited applications for setting CNG stations in a dealership model (Dealer owned Dealer Operated (DODO), which has started receiving an encouraging response.
File Image (PSU Connect)
New Delhi: IndianOil-Adani Gas Pvt. Ltd. (IOAGPL), a joint venture company of Indian Oil Corporation Limited (IOC) – a Maharatna Company of Government of India and Adani Gas Ltd. (AGL), a leading city gas distribution company and part of Adani Group will be investing more than Rs 4,500 crore in CGD projects over the next five-six years.
The amount will be used for setting up a 300-km steel pipeline network, and more than 2,500-km-long medium density polyethylene network along with associated facilities to provide CNG to industrial, commercial, and domestic units.
Bhashit Dholakia, Senior Vice-President and COO of IOAGPL said apart from this, the company would set up more than 450 CNG stations to cater to the transportation sector. It has invited applications for setting CNG stations in a dealership model (Dealer owned Dealer Operated (DODO), which has started receiving an encouraging response.
He Further added, a total of six CNG stations have been commissioned in Thrissur, and work on 14 more stations is in progress, the work for the construction of a steel network in Thrissur, Palakkad, Mallapuram, Kozhikode, Kannur, and Kasargod is undergoing.
IOAGPL is in its initial phase of a 39 km high-pressure steel network and has commenced the construction. Work on four CNG stations has also commenced and by March next year, 16 more CNG stations would be added.
A 400 km green corridor would be established, in helping to reduce the polluting fuels with green CNG and the CNG station will be set up at Ernakulam, Thrissur, Mallapuram, Kozhikode, Kannur, and Kasargod districts. However, this will also extend the life of buses for five years while converting into CNG. The retrofitting of the buses to CNG would cost about Rs 3.50 lakh, which can be recovered in six months because CNG is a cheaper and more efficient fuel than diesel, Bhashit Dholakia added.
The possible measures and steps are taking to support this project, by the government and focusing on the CNG which immensely benefits the states.
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