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IGL signs long-term agreement with DTC for supply of CNG

IGL signs long-term agreement with DTC for supply of CNGNew Delhi: Indraprastha Gas Ltd, India’s largestCNGretailer, on Wednesday signed a long-term agreement to supply compressed natural gas toDelhi Transport Corporation(DTC) buses.

The 10-year compressed natural gas (CNG) supply deal was signed by IGL Managing Director A K Jana and DTC Managing Director Vijay Kumar Bidhuri, a company statement said.

The gas supply agreement is valid till December 2030, it said. DTC is the largest CNG-powered bus service operator in the world with a fleet size of 3,762 buses and is also in the process of procuring 1,000 new CNG buses which would shortly be plying on the roads of the national capital.

“It consumes around 2.80 lakh kgs of CNG per day for its buses which constitute around 11 per cent of daily CNG sale of IGL. The consumption of CNG is expected to increase further after the addition of new buses,” the statement said.

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

“These state-of-the-art CNG filling facilities have helped in timely CNG fuelling of the fleet. The initiative has resulted in optimization of time, finances, and resources for DTC apart from ensuring timely commute of the buses on their respective routes,” it said.

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.

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

IGL retails CNG to automobiles and piped natural gas to households for cooking purposes and industries as fuel in 10 cities including Delhi, Noida, Greater Noida and Ghaziabad (in Uttar Pradesh).

It sells fuel to over 12 lakh vehicles in the national capital region (NCR) through a network of 560 CNG stations. Besides, it supplies piped natural gas to nearly 16 lakh households in these cities.

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