Odds/Evens Stimulates Demand For More CNG Stations In Noida
The district administration of Noida, part of the National Capital Region of India, is preparing to grant licences for 14 new CNG filling stations. There are 19 CNG stations in Noida at present, which collectively provide about 150,000 kg of Compressed Natural Gas to 35-40 thousand customers daily. Delhi’s odd-even policy introduced at the start of 2016 has stimulated the increased demand for the fuel from areas not adequately covered by the current network.
Declaring the need to address air pollution, the government introduced the odds/evens system similar to that implemented by Beijing, whereby private vehicles are allowed to travel the city based on their registration numbers, with odds and evens operating on alternate days. Interest in CNG vehicles has been stimulated because this rule is not applicable to public transport vehicles like CNG-powered buses, taxis and auto-rickshaws.
According to local media sources, Indian Oil Corporation Limited (IOCL) has submitted permit applications for 10 stations while Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited will set up two stations each, said sources. Some of the new stations may be operational by March.
In addition, a study is being conducted to identify spots where CNG stations could be set up. Noida pulses with thousands of cummuters who travel to hundreds of factories and multinational companies evry day and it is hoped office-goers and residents will switch to environment-friendly CNG vehicles.
“CNG is a cheap and environment-friendly fuel as compared to petrol and diesel. We have received several requests for conversion of petrol and diesel vehicles to CNG in the past one month,” said Rachna Yaduvanshi, ARTO (administration) Noida.
Indraprastha Gas Limited created a special discount of INR 1.50 per kg during Off-Peak hours (12.00 A.M. to 5.00 A.M.) from 1st January 2016 onwards, at select 230 CNG stations in Delhi and NCR in a bid to ease congestion at these stations.
IOCL has a franchise agreement with Indraprastha Gas Ltd., Mahanagar Gas Ltd and others to sell CNG through retail outlets.
Broader CNG Network
At present CNG retail outlets of GAIL and its JVCs are available in Delhi, Maharastra, Uttar Pradesh, Gujarat, Andhra Pradesh, Tripura, and Madhya Pradesh States having 105 mother stations, 187 online stations, 87 daughter boosters and 7 daughter stations with a total of 386 CNG retail outlets catering to approximately 6 lakh (600,000) natural gas vehicles. Indraprastha Gas Ltd, a JV of GAIL (India) Ltd, has 190 CNG retail outlets and Mahanagar Gas Ltd another JV of GAIL (India) Ltd has set up 144 CNG stations. Similarly, other JVCs like MNGL has 13 outlets, BGL has 11 outlets , CGUL and GAIL Gas Limited with 10 outlets each, and AGL with 6 retail outlets.
GAIL Gas Limited, the wholly owned subsidiary of GAIL Gas Limited, a wholly owned subsidiary of GAIL (India) Limited has currently 17 CNG outlets at Dewas, Sonepat, Kota, Meerut, Vijaipur, Dibiyapur, Firozabad, Vadodara and Panvel. It will be commissioning other outlets very soon.
CNG currently sells for INR 37.20/Kg (USD 0.55) in Delhi and INR 42.60 kg (USD 0.63) in NCR.
(Sources: IOCL, GAIL, IGL and others)