You are here: Home » Companies » News
Business Standard

IGL to set up CNG stations in housing complexes to ease queues at pumps

The company is facing pressure to cut queues at CNG stations that have led to traffic snarls in many parts of the city

Press Trust of India  |  New Delhi 

Indraprastha Gas Limited
CNG pump

Indraprastha Gas, India's biggest city gas retailer, is looking at setting up CNG dispensing stations within residential housing complexes to ease queues at CNG pumps, its Managing Director said.

The company, which retails CNG to automobiles and piped to household kitchens in the national capital and its suburbs, is facing pressure to cut queues at CNG stations that have led to traffic snarls in many parts of the city.also plans to foray into e-vehicle charging segment by setting up charging facility at its CNG stations, he said.

It has already set up one CNG dispensing pump at a residential housing complex in Noida on pilot basis, he said.

"All we need is a 10x10 metre area - a space equivalent to one used for parking of four cars. We will set up CNG station and man it as well. Residents of the housing complex will get priority filling," he said adding the company will be responsible for the running and upkeep of the facility.

Ranganathan said is also setting up e-vehicle charging facility and has tied up with a Dutch company.

IGL, he said, plans to add a record 60 CNG dispensing stations and give piped connections to at least 2 lakh households this fiscal.

The company has adopted a dealer-franchise model in the push for rapidly expanding the network.

The company, with 452 CNG stations in Delhi, Noida, Greater Noida, Ghaziabad and Rewari, has started giving the franchise to dealers who own lands. "We already have two CNG dispensing stations operating on dealer model and have given letters of intent (LoIs) for another 21 which will be commissioned within the current financial year," he said.

Ranganathan said the company opened 30 CNG stations last year and in 2018-19 it has a target to open 50. "Though the target is 50, we are confident of putting up 60 stations," he said.

The company, which has over 9,60,000 piped customers, has a target to add 3,00,000 this fiscal. "We gave 1,50,000 piped natural gas (PNG) connections in last financial year and this year we are confident of crossing 2,00,000. We can achieve 3,00,000 target as areas currently out of bound like Cantonment areas are opened up for us to lay pipelines and give connections in kitchens," he said.

The government is aggressively pushing for use of CNG as a transportation to cut on use of polluting liquid fuels like diesel. It also wants to replace costlier LPG in kitchens with a view to cut oil import dependence and push up the share of natural gas in the country's energy basket to 15 per cent from current 6.2 per cent. India imports 81 per cent of its oil needs.

In its push towards a gas-based economy, the government is targeting 1 crore connections by 2020.

The country has 4.526 million household kitchens using natural gas as cooking Gujarat has the highest number of users at 1.907 million, followed by Maharashtra at 1.273 million. Delhi ranks third. Both Gujarat and Maharashtra have multiple retailing CNG and PNG.

Ranganathan said is committed to achieving the targets in the push towards a gas-based economy.

"We are trying new innovations to increase the penetration," he said. IGL previously used to set up CNG dispensing stations only on franchise model where outlet together with land belonged to the company and a dealer was appointed to run it.

Now, it is giving franchises to dealers who own land. In 2018-19, the government is targeting 2 million PNG connections all over the country, up from 1.2 million in 2017-18. In 2019-20, the target is 4 million.

First Published: Tue, October 02 2018. 13:25 IST
RECOMMENDED FOR YOU