CNG Is The Fuel Of The Future, Says Govt

Compressed Natural Gas, or CNG, is not the fuel of choice of many car owners in the country. In fact, the biggest consumer of CNG fuel is the public transport system, including private cabs. But the government is betting big on CNG in the coming years and firmly believes it to be the alternative fuel of the future. At the 58th SIAM annual convention held recently, Dharmendra Pradhan, the minister for petroleum & natural gas and skill development & entrepreneurship, announced that the government is planning to increase the number of CNG filling stations from the current 1,400 to 10,000 in the next ten years.

According to the minister, the main challenge in the viability of CNG-powered vehicles is the limited number of filling stations across the country. Currently, only 73 districts in the country boast of CNG fuel stations. The government has stated that it will be investing Rs 70,000 crore in the next decade and plans to spread the CNG network to over 300 districts by the end of 2018.

CNG vehicles are not only more eco-friendly when compared to their petrol and diesel-powered counterparts but they also have a lower cost/km. Plus, rising fuel prices could prompt entry-level car customers to move to CNG.

Maruti Suzuki and Hyundai currently offer CNG models built in the factory. However, the sales numbers of these cars are quite low due to the limited number of filling stations. With a rapid growth of the CNG network, we could see consumers, at least in the entry-level hatchback segment, move to CNG-powered cars for a greener future.

In addition, the minister also stated that the government is working towards developing ethanol, bioethanol and bio-CNG as alternative fuel sources for the future. According to the minister, Indian Oil Corporation and other state-owned oil companies will also be contributing towards the development and distribution of alternative fuels. Meanwhile, Prime Minister Narendra Modi announced today that the government is working on a stable EV and alternate fuel policy, which could be introduced soon.