Kerala Public Transport Prepares for CNG to Arrive

| India, Kochi | Source: Hindu Business Online

Kerala State Industrial Development Corporation Ltd (KSIDC) and Gail Gas Ltd, Noida have formed a joint venture to develop natural gas vehicle refuelling infrastructure in the State, reports Hindu Business Online. The new company, Kerala Gail Gas Ltd (KGGL), will establish compressed natural gas (CNG) stations for Kerala State Road Transport Corporation¬† (KSRTC) buses. Initially, the stations will be set up in Kochi, on India’s south west coast.Apparently natural gas will be available in the city within one year; using the gas as vehicle fuel is expected to reduce operating costs and environmental impact. CNG station land will be provided by KSRTC and KGGL will arrange installation.

KSRTC is said to have a fleet of 6,000 buses and is drawing up plans to convert the fleet over time to CNG. The business plan, which received the approval of KGGL’s board, includes setting up of CNG stations for KSRTC depots and for boat services, and marketing of gas-related equipment.

According to the feasibility report, the project cost is estimated at Rs2,000 crore. Gail Gas Ltd will have 26 per cent equity and KSIDC will have 24 per cent equity in the joint venture company formed. The remaining shares will be offered to financial institutions / strategic investors, at a later date. The Corporate Office of the company will function from the GAIL, Kochi office, initially.