Insight Online News
Chennai, July 27 : Tamil Nadu Chief Minister M.K. Stalin on Tuesday brought the Chennai, Tiruvallur districts under Torrent Gas market map inaugurating 25 compressed natural gas (CNG) stations and one City Gate Station or mother station.
Torrent Gas also announced an investment of about Rs 5,000 crore in Tamil Nadu in setting up the gas distribution infrastructure and other items.
“Access to Compressed Natural Gas, which is a cheaper and cleaner alternative to petrol and diesel has been a felt need of the people of Tamil Nadu. Widespread availability of CNG and significant savings will encourage consumers to adopt it, thereby having a positive impact on the environment,” Stalin said.
“The domestic, commercial and industrial use of natural gas will spur further industrial development in the State,” Stalin added while assuring the company of the state government’s support to Torrent Gas in setting up its infrastructure.
Torrent Gas has announced an aggressive price of Rs 51.35/Kg for CNG, in Chennai and Tiruvallur, which is the second lowest CNG price in the country after the NCR region.
At this price, adoption of CNG as a fuel will help customers in Chennai save up to 66 per cent vis-a-vis petrol, 61 per cent vis-à-vis diesel and 42 per cent vis-a-vis automotive LPG.
CNG prices are also much more stable as compared to those of petrol and diesel, which undergo frequent changes.
According to Jinal Mehta, Director, Torrent Gas, the company aims to commission 50 CNG stations by this September and 100 by June 2022.
Apart from the industrial and commercial segment, Torrent Gas plans to supply piped gas to the residential segment.
Mehta said that in the next one year, the company is looking at providing 70,000 – 80,000 domestic connections and has also identified commercial, industrial and residential clusters.
He said steel pipelines will be laid along the corners of the road.
“Torrent Gas intends to make a total investment of Rs 5,000 crore in Tamil Nadu over the next five years towards the creation of CGD (city gas distribution) infrastructure including laying steel and PE pipelines to provide piped natural gas to domestic, industrial and commercial customers and setting up CNG stations,” Mehta said.
At a national level, Torrent Gas has already invested around Rs 1,900 crore and plans to invest around Rs 10,000 crore over the next five years, across the country.
The company will be funding the capex with 70 per cent debt and 30 per cent equity by the group’s holding company.
Queried about electric vehicles eating into the CNG vehicle segment and in turn the company’s business Mehta said electric vehicles will take some more time to come.
Mehta also said the company is looking at acquisitions and has already acquired three companies.
IANS / AGENCY