5,000 new CNG refueling stations to come up across India

With increasing demand for CNG in the country, government launches a new model for CNG stations across the country. Minister of Petroleum and Natural Gas & Skill Development and Entrepreneurship Dharmendra Pradhan today launched the Dealer Owned Dealer Operated (DODO) model for setting up CNG stations on the sidelines of Petrotech 2019.

Under the general guidelines for the scheme, the entire earmarked dealer plot shall be developed exclusively for setting up of CNG station and allied commercial activities at the discretion of City Gas Distribution (CGD) activities. Under the scheme, 87 geographical areas serviced by 23 entities authorised will be covered.

Speaking at the event Minister Dharmendra Pradhan said,

The country is moving towards the gas economy, as this fuel is cheaper and less polluting. The Petroleum and Natural Gas Regulatory Board has undertaken unprecedented expansion of City Gas Distribution network, and this will lead to laying of more gas pipelines, increased production and availability of the gas, and also last mile connectivity of the infrastructure to provide Compressed Natural Gas and Piped Natural Gas to the consumers.

More than 4600 new CNG stations are expected to open across India in next 8 years. The ongoing 10th round of CGD expects to cover 50 geographical areas, covering 124 districts spread across 14 states. After the 10th bidding, around 53 percent of the country’s area and 70 percent of total population will have access to CGD network. As more and more CNG stations come up, more than 10 percent CNG stations may be based on Dealer Owned Dealer Operated model.

Many manufacturers are also moving away from diesel engines and shifting towards alternate fuels. For instance Volkswagen group has shown keen interest in CNG fuels. They earlier announced that the company would come up with a new compact SUV in 2020 or 2021 and it will not get a diesel engine. The SUV will be powered by a turbocharged petrol engine, which is also expected to be configured to offer a CNG-Petrol option.

Natural gas is the main source of CNG and they are highly efficient and emit low polluting particles, because of this natural gas engines are gaining popularity among the buyers. Volkswagen is already offering a number of models with natural gas engine in the international market like Germany. Volkswagen calls it as TGI powertrain.