IndianOil-Adani Gas to invest Rs 4,500 cr in Kerala for city gas distribution project

V. Sajeev Kumar Kochi | Updated on December 28, 2020

Pipeline network to provide CNG to industrial, commercial and domestic units to be set up

IndianOil-Adani Gas Pvt Ltd (IOAGPL), which is implementing the city gas distribution project in Kerala, will be investing more than Rs 4,500 crore in CGD projects over the next five-six years.

The amount would be earmarked for setting up a 300-km steel pipeline network, besides a more than 2,500-km-long MDPE (medium density polyethylene) network along with associated facilities to provide CNG to industrial, commercial and domestic units.

Besides, the company would set up more than 450 CNG stations to cater to the transportation sector. It has invited applications for setting CNG stations in a dealership model (Dealer owned Dealer Operated (DODO), which has started receiving an encouraging response, said Bhashit Dholakia, Senior Vice-President and COO, IOAGPL.

According to him, the work for the construction of a steel network in Thrissur, Palakkad, Mallapuram, Kozhikhode, Kannur and Kasargod has started. A total of six CNG stations have been commissioned in Thrissur and work on 14 more stations is in progress. IOAGPL has commenced construction of the initial phase of a 39 km high-pressure steel network. Work on four CNG stations has also commenced and by March next year, 16 more CNG stations would be added, he said.

With CNG stations being set up at Ernakulam, Thrissur, Mallapuram, Kozhikode, Kannur and Kasargod districts, Dholakia said a 400 km green corridor would be established in the state that would help replace polluting fuels with green CNG.

There are about 10,000 BS-III standard buses operating in the State, which would not be operational beyond 10 years. However, once converted to CNG, these buses will enjoy an extended life of five years. The retrofitting of the buses to CNG would cost about Rs 3.50 lakh, which can be recovered in six months because CNG is a cheaper and more efficient fuel than diesel, he added.

Recently, the State Transport Corporation also came out with a tender to purchase 300 new CNG buses that can operate between Ernakulam and Kannur.

The state government is taking all possible steps to support the pipeline development and remove all hurdles in the way of these projects. With the focus on CNG, he said the state would benefit immensely from the conversion of buses and conversion of public transport on CNG.

Published on December 28, 2020

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