Poor supply hits CNG, LPG based Gujarat transport plan

While the Gujarat government is pushing for increased use of compressed natural gas (CNG), the delay in setting up new supply stations has threatened to derail the cherished project of chief minister Narendra Modi.

Though conversion of three-wheelers and four-wheeler vehicles to CNG was taking place, not a single CNG station had been set up in the last seven months in Ahmedabad.

Around 8,000 auto rickshaws in Ahmedabad had converted to CNG where only 10 CNG stations were operational, serving around 800 auto rickshaws daily with around 30kg of CNG.

Total demand was 24000kg of CNG , too high to be supplied with existing infrastructure.

Use of CNG in Gujarat received huge publicity but infrastructure development was stalled at present.

Existing CNG users faced long queues, overflow of fuel and supply shortages.

As many as 25 stations were scheduled to be set up by December 2005 and 50 by December 2006 in Ahmedabad city.

Liquified petroleum gas (LPG) would be promoted in the same way to give citizens an option to choose between CNG and LPG.

"It is true that not a single CNG station has been set up in last eight months and there was a lull for some period as the companies initially did not expect that many conversions may take place," admitted D J Pandian of GSPC.

He said conversions had increased suddenly and companies would honour commitments on setting up CNG stations in the next five months, he added.

At a joint meeting of government officials and companies, it was agreed Ahmedabad would get around 50 CNG stations by March 2006.

Adani group would set up 40 CNG stations by March 2006, with 15 coming up by December 2005 and 15 more by March 2006.

Hindustan Petroleum Corporation Limited may set up 10 stations by March 2006.

Out of 10 CNG stations by Adani, four would be online cum mother stations and one daughter booster station.

Five other could be co-located with Bharat Petroleum Corporation Limited (BPCL) outlets.

Rajeev Sharma, director of the Adani group, said its 10 CNG stations were operational at present and 20 would come up by March 2006.

Conversion was increasing but delays in setting up of stations was because of delays in getting approvals, he complained, and time needed to build infrastructure.

Plans for districts like Valsad, Anand, Navsari, Billimora, Kahmbhat, Morbi and Vakaner had been chalked out, with a minimum of one station in each district.

No plans had been made for Vadodara and Rajkot.

In Surat, Gujarat Gas was planning to set up around 20 CNG stations.

Most private players were going slow on CNG stations in districts fearing inadequate demand.

Indian Oil Corporation Limited (IOCL) would set up around 14 LPG stations in the state, including two in Ahmedabad, three in Vadodara and one each in Rajkot and Surat by March 2006.

IOCL could increase the number of LPG stations if demand was high.

LPG was a safe fuel and the initial kit installation charges were not very high, claimed R K Khatri, chief LPG manager, IOCL.

Other oil PSUs like Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation (HPC) would build 40 LPG stations.

BPCL was expected to commission LPG stations this fiscal at Palanpur and Bhavnagar, three at Surat and one in Rajkot, followed by two in Ahmedabad and two in Surat.

At present, two BPCL LPG stations were operational in Ahmedabad.

HPC would set up up three stations in the current financial year along with one LPG station each at Vadodara, Surat, Anjar, Jinagadh and Porbandar, three in Rajkot, two in Gandhidham and two in Bhavnagar.

HPC had two stations operational, in Ahmedabad and in Rakhial.