Railways ties up with GAIL to use natural gas in production units, workshops

The railways signed a memorandum of understanding (MoU) with state gas utility GAIL today to use natural gas in its workshops and production units.

The aim is to replace industrial gases like dissolved acetylene, LPG and furnace oil/high-speed diesel (HSD) with environment-friendly natural gas.

In the first phase, around 23 workshops will use natural gas by December 31. It will be expanded to all 54 workshops and production units, and railway establishments -- including base-kitchens, guest houses, hostels -- by June 30 next year, Railway Board Chairman Ashwani Lohani told reporters.

The use of natural gas has a potential to replace fuel worth Rs 70 crore per annum. GAIL and the Indian Railways Organization for Alternate Fuel (IROAF) would prepare a project report by September 30, Lohani said.

A pilot project at Matunga and Kota, Rajasthan, has been commissioned, which can result in annual savings of Rs 20 lakh and Rs 21 lakh respectively. Its use at the Rail Wheel Factory, Bengaluru, has led to a saving of 410 kilolitres of HSD per month, saving around Rs 8-10 crore and reducing CO2 emissions by nearly 28 per cent, he said.

About 1,100 houses at a railway colony in Bhubaneswar have been provided with domestic piped natural gas, he added.