Govt unveils new business model for CNG stations

New Delhi: Union Minister of Petroleum and Natural Gas Dharmendra Pradhan launched the Dealer Owned Dealer Operated (DODO) model for setting up CNG stations on Monday. He released the general guidelines for the schemes, under which the entire earmarked dealer plot shall be developed exclusively for setting up of CNG station and allied commercial activities at the discretion of City Gas Distributors (CGD) activities. Under the scheme, 87 geographical areas serviced by 23 entities authorised will be covered.

More than 1,500 CNG stations are presently operational in the country, catering to the demands of over 33 lakh CNG vehicles. Under the ninth round of CGD bidding, more than 4,600 new CNG stations are expected to come up across India in the next eight years. The ongoing 10th round of CGD bidding envisages to cover 50 GAs, covering 124 districts spread over 14 states, accounting for 24 percent of India's area and 18 percent of its population. After the 10th bidding round, 53 percent of the country's area and 70 percent of its population will have access to CGD networks. As more and more CNG stations come up, more than 10 percent CNG stations may be based on DODO model.

Speaking on the occasion, Pradhan said that the country is moving towards the gas economy, as this fuel is cheaper and less polluting. The PNGRB has undertaken an unprecedented expansion of the CGD network, and this will lead to laying of more gas pipelines, increased production and availability of the gas, and also last mile connectivity of the infrastructure to provide CNG and PNG to the consumers. He called upon the investors and private players to participate in the growth of gas-based economy by using the opportunity provided through DODO.