IBEF: October 07, 2020
On Tuesday, Torrent Gas Ltd said it will spend Rs 8,000 crore (US$ 1.1 billion) over the next five years to expand its urban gas operations with the aim of setting up 500 CNG dispensing pumps by March 2023.
Torrent Gas, the $3 billion Gujarat-based Torrent Group's city gas distribution arm, holds a city gas licence for the sale of compressed natural gas (CNG) vehicles and piped cooking gas (PNG) to factories and kitchens in 32 districts across seven states.
Torrent Gas set up 100 CNG pumps within 18 months of its operations, its owner, Mr Jinal Mehta, said at a virtual event organised to announce the commissioning of 42 CNG stations.
This commissioning, he said, brought the number of CNG stations to 100 under the Torrent fold.
Mr Mehta said, "Torrent Gas intends to make a total investment of Rs 8,000 crore ($1.1 billion) over the next 5 years towards the creation of CGD infrastructure in the country, of which Rs 1,050 crore (US$ 143.45 million) has already been invested".
Torrent Gas was able to set up 100 CNG stations within a reasonably short period of time, considering the constraints posed by the COVID-19 pandemic.
Mr Mehta said, "We are now working towards our near-term goal of setting up 200 CNG stations by March 2021 and medium-term goal of setting up 500 CNG stations by March 2023, apart from making PNG widely available to industries and residences in our authorised areas".
City gas distribution projects are crucial to achieving the vision of the government to increase the share of natural gas in the energy basket from the current 6.2 percent to 15 percent by 2030 to reduce carbon emissions.
Oil Minister Mr Dharmendra Pradhan, speaking on the occasion, said CNG pumps should look to become energy suppliers by also selling conventional fuels such as petrol and diesel alongside alternatives such as biogas and LNG.
He said the government wants to increase the country's number of CNG stations from about 2,300 at present to 10,000 over the next four to five years. The CNG stations commissioned on Tuesday are located across different states, including 14 in Uttar Pradesh, eight in Maharashtra, six in Gujarat, four in Punjab and five in Telangana and Rajasthan, respectively. In addition, City Gate Stations have also been commissioned in Uttar Pradesh, Maharashtra and Punjab.
Mr Mehta said Torrent plans to make CNG and PNG accessible in Chennai, the only metro city that has yet to be reached by CNG and PNG.
A crucial step towards energy sufficiency and meeting India 's commitment under the Paris Agreement to reduce its emissions is the availability of clean and economical CNG and PNG across the world.
A crucial step towards energy sufficiency and meeting India 's commitment under the Paris Agreement is the availability of clean and economical CNG and PNG across the country.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.