GAIL Gas and Confidence Petroleum India Ltd (CPIL) has signed an agreement for setting up 100 CNG stations in Bengaluru as they looked to strengthen the network supplying clean CNG to automobiles in the IT capital of the country.
Vivek Wathodkar, Chief General Manager signed the agreement on behalf of GAIL Gas while Nitin Khara, Chairman & Managing Director, CPIL inked the pact on behalf of CPIL, GAIL said in a statement. "As part of the agreement, CPIL will set up and operate 100 CNG stations and associated facilities of GAIL Gas in Bengaluru," it said. "The Dealership Agreement is for setting up 100 CNG stations in 3 years."
The new CNG stations will be located in core areas of the city or at CPIL's auto LPG retail outlet sites. To optimise uptake of CNG and improve the accessibility of CNG fuel for Bengalureans, GAIL Gas has been adopting various models of CNG dispensing in the city.
GAIL Gas has extended its network through company-owned company-operated CNG Station model and CNG stations at petrol pumps of oil firms. With this agreement, GAIL Gas will increase CNG Stations in the city on dealership model, the statement said.
In the current scenario, CNG presents an affordable and environment-friendly alternative. CNG at present is priced at Rs 51.50 per kg in Bengaluru. Currently, GAIL Gas has installed 55 CNG stations in the city.
"Addition of another 100 CNG stations through this agreement will develop a strong and convenient network of availability of CNG in the Bengaluru urban and rural district and CNG sales are expected to increase considerably," the statement said.
GAIL Gas is the city gas distribution subsidiary of state-owned GAIL (India) Ltd. It is implementing city gas network in 52 cities and towns across the nation.
The company has connected over 6.10 lakh households with piped cooking gas and operates nearly 190 CNG stations. CPIL is a private gas retailer and has 209 Auto LPG dispensing stations in 22 states.
