IGL signs long-term agreement with DTC to supply CNG

New Delhi: Indraprastha Gas Limited (IGL), the largest compressed natural gas (CNG) distribution company in the country, has signed a long-term gas supply agreement with Delhi Transport Corporation (DTC) to supply CNG for a period of 10 years (ie till December 2030). The agreement has been signed by IGL's Managing Director (MD) AK Jana and DTC's MD Vijay Kumar Bidhuri in the presence of Kailash Gahlot, Transport Minister for NCT of Delhi. Senior officials of the Delhi Government, IGL and DTC were also present on the occasion.

DTC is the largest CNG-powered bus service operator in the world with a fleet size of 3,762 buses at present and is in the process of procuring 1,000 new CNG buses which would shortly be plying on the roads of the national capital. DTC consumes around 2.80 lakh kg of CNG per day for its buses, which constitutes around 11 percent of the daily CNG sales of IGL. The consumption of CNG is expected to increase further after the addition of new buses.

The relationship between IGL and DTC dates back to the inception of IGL and has been mutually beneficial for both organisations. DTC has been one of the largest customers of IGL.

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Earlier in 2010, IGL had signed a long-term gas supply agreement with DTC to supply CNG. As part of the agreement, dedicated CNG filling facilities were set up at 44 depots of DTC across Delhi and Noida to cater to the fleet of DTC buses being used for public transport. These facilities have a total compression capacity of 10 lakh kgs per day.

These state-of-the-art CNG filling facilities have helped in timely CNG fueling of the fleet. The initiative has resulted in optimisation of time, finances and resources for DTC, apart from ensuring timely commute of the buses on their respective routes. In addition, DTC has provided 19 plots adjacent to its depots to IGL for the creation of hybrid facilities, which are used as retail outlets for serving the public.

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