CNG sends dealers on space hunt! | india | Hindustan Times
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CNG sends dealers on space hunt!

india Updated: Oct 27, 2006 00:07 IST

PETROL PUMP owners are nowadays battling for space to accommodate CNG dispensers within their premises.

Reason: December 2006 is the deadline for commercial vehicles to switch on the CNG mode. And majority of traditional petrol pumps don’t have that extra space to take the heavy commercial vehicles for CNG! Besides, CNG means fitting large dispensers and larger compressors underground. This means a fresh hunt for space.

With the average price of land around petroleum retail outlets ruling around Rs 7,000 per sq ft, a petrol pump owner is required to make an investment of at least Rs 1 crore for developing independent retail outlets in 14,000 sq ft  area to be able to cater exclusively to CNG vehicles.

The Green Gas Ltd (GGL), a joint venture between Indian Oil Corporation (IOC) and Gail (India) Ltd, had started establishing CNG dispensers in existing petroleum outlets involving a cost of Rs 1.50 crore each on land earmarked by petroleum dealers.

The Mother Station established by GGL for supply of CNG at Amausi is currently dispensing 300 kgs of CNG per day in the transport sector. The total CNG allocation for the city is 0.1 million cubic metres per day. The CNG stations being established in other parts of the city are expected to receive about 500 vehicles per day in the high- density traffic areas by the middle of 2007.

“GGL is investing heavily into establishing the entire CNG infrastructure at existing petroleum retail outlets which is a cost- intensive process. A total of four CNG stations have already become operational while two more are expected to be opened by November 15 this year”, president of UP Petroleum Traders’ Association B N Shukla told HT Lucknow Live.

He said a total of 12 CNG stations have been planned in the first phase which would require a minimum investment ranging from Rs 15 to 20 lakh by the petroleum dealers for CNG dispensers and compressors.

All CNG stations require an explosives licence for which dealers have already started applying in advance, he added.