GAIL Gas invites dealerships to set up CNG stations in Mangaluru

It plans to cover 3.5 lakh households through piped natural gas supply

Updated - May 16, 2019 08:16 am IST

Published - May 16, 2019 01:17 am IST - MANGALURU

A cofferdam has been built across the Netravathi at Arkula to facilitate laying of pipeline 6 m below the riverbed by GAIL.

A cofferdam has been built across the Netravathi at Arkula to facilitate laying of pipeline 6 m below the riverbed by GAIL.

GAIL Gas Limited, a subsidiary of GAIL (India) Ltd., which has won authorisation for the City Gas Distribution project for Dakshina Kannada, on Wednesday invited CNG dealership across the city on 15 road stretches.

Motivating land owners and individuals to collaborate in developing Green Mangaluru by setting up Compressed Natural Gas (CNG) stations on Dealer Owned Dealer Operated (DODO) model, GAIL said that land would be developed as CNG stations and for allied commercial activities on the lines of petrol stations.

A release here quoted GAIL Gas CEO A.K. Jana as saying, “People in Mangaluru will have a better quality of life by creating CNG infrastructure to promote cheaper and cleaner fuel CNG. Partnering with the company will also be an opportunity for those in possession of land to join hands with GAIL Gas in their endeavour, ‘Haccha Haridra Dakshin Kannada’ to provide clean fuel for the transport sector.”

The entire plot owned by a private owner would be developed exclusively for setting up of CNG stations as per the selection process of the company. After selection of the site, the plot owner applicant would enter into a long-term agreement for 10 or more years on lease basis.

While GAIL Gas would install and commission CNG equipment (compressor/ cascade/ dispenser, etc.,), the dealer would arrange for all requisite permission from statutory authorities at his cost. The dealer would have to conduct the day-to-day operations of the CNG station, including general maintenance for commission to be paid by GAIL Gas as per the guidelines.

There would be five charge areas: Bantwal, Belthangady, Mangaluru, Puttur and Sullia, 100 CNG stations, and a coverage of about 3.5 lakh households. The total capital investment for the project is ₹ 1,972 crore for 25 years benefiting 20 lakh population. The main supply of CNG for GAIL Gas would be from GAIL’s Kochi-Koottanad-Mangaluru-Bengaluru pipeline.

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