Gujarat government firms to invest Rs 800 crore for 214 CNG stations

GUJARAT : Two state government owned companies — Gujarat Gas Limited and Sabarmati Gas Limited — will set up 214 CNG stations across the state at a cost of Rs 800 crore, Gujarat Chief Minister Vijay Rupani said on Friday.

At a formal event held at the Chief Minister’s Office, Rupani handed over a Letter of Intent (LoI) to the 214 dealers who will be setting up CNG stations in partnership with the government. “The companies will earn back the money invested in just three years,” Rupani claimed. Gujarat Gas Ltd will be setting up 183 stations, while Sabarmati Gas Ltd will set up the remaining 31 stations under the newly floated “CNG Sahabhagi Yojana.”

Under this scheme, there are two models for setting up the CNG stations. In the franchise model, the dealers will have to provide the land at a prime location and on the roadside. In the second OMC model, dealers who already operate petrol pumps can set up CNG stations within the same premises.

The LoIs were given for CNG stations in Rajula, Gondal, Dwarka, Jetpur, Bhavnagar, Talaja, Savarkundla and Amod, among other places. Government officials told The Indian Express that while both the state entities will bear cost of setting up of compressors, provide gas and train the manpower, the dealers will have to take care of the civil construction and recruiting the desired manpower.

Currently, of the total 1815 CNG stations in the country, 31 per cent or 558 CNG stations are in Gujarat. Of these stations in the state, 77 per cent or 431 stations are operated by two Gujarat government-owned companies, Gujarat Gas Ltd and Sabarmati Gas Ltd. These companies provide 13.9 lakh kg of CNG daily, to 3.5 lakh customers in the state.

Rupani said that before March 2020, the government has targeted to set up another 200 CNG stations in Gujarat, which will take the total number of such stations to over 1000.

“We are the only state which will be setting up a special terminal for CNG. We already have LNG terminals. The discussions for CNG terminals are currently on, this will help in getting cheaper imports,” the CM added.

At present, Sabarmati Gas Ltd operates about 80-odd CNG gas-filling stations in Gandhinagar, Mehsana, Sabarkantha and Patan districts, while Gujarat Gas Ltd operates CNG stations in Saurashtra, Central Gujarat and South Gujarat. The latter has also set up CNG stations in Palghar and Thane (Rural) in Maharashtra and in the union territory of Dadra and Nagar Haveli.