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Tata Motors in talks with IOCL, PLL for infra project

In talks with Indian Oil and Petronet LNG for refuelling centres along high-density corridors

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Mumbai-based Tata Motors is in talks with Indian Oil Corporation Ltd (IOC) and Petronet LNG Ltd (PLL) for developing related infrastructure for its LNG buses along the high-density Delhi-Mumbai and Kolkata-Bengaluru corridors.

Liquefied natural gas (LNG) is cheaper by almost 40% as compared to diesel and 20% when it comes to compressed natural gas (CNG). However, experts are skeptical about the success of LNG vehicles considering things did not move the way they should have when CNG was introduced. Moreover, with electric vehicles (EV) now being the focus, successful adoption of LNG looks slightly difficult. The government is now aiming to see all vehicles produced beyond the year 2030 to be EVs.

According to Girish Wagh, head, commercial vehicles business at Tata Motors, talks are on with these fuel companies who will be required to develop centres for refuelling across the corridors along with other related infrastructure.

"We have the LNG vehicle ready and are waiting for the infrastructure to take up," said Wagh.

Industry experts point that LNG buses can operate up to 600-700 kilometre in a single filling, which is almost double than that of CNG. Though India currently lacks the massive infrastructure that is required for successful plying of LNG vehicles, efforts are being made in that direction.

At present, there are four LNG terminals – Dahej and Hazira in Gujarat), Dabhol in Maharashtra and Hazira in Gujarat together with a capacity of nearly 22 million tonne which may go up to about 47.5 mt by year 2020.

Delhi-Mumbai Industrial Corridor (DMIC) is among India's most ambitious infrastructure programmes aiming to develop new industrial cities as smart cities and developing them as a global manufacturing and trading hubs. In addition to new industrial cities, the programme envisages development of infrastructure linkages like power plants, assured water supply, high capacity transportation and logistics facilities. A similar corridor is also planned to be developed along the Kolkata-Bengaluru route covering.

As per the reports, Petronet LNG Ltd, which is India's largest importer of liquid gas, is getting into retail sales of LNG by tying up with oil marketing companies and using their nearly 1,000 retail outlets across the country in the next three years.

IOC is a co-promoter of PLL, which has set up LNG import terminals at Dahej and Kochi, and has marketing rights for 30% of the LNG procured by PLL, the company's website reveals. It is also in the process of sourcing more quantities of LNG directly to meet the increasing domestic requirements and is setting up a five-mmtpa terminal at Ennore near Chennai for LNG imports.

According to the reports, the fuel companies have also got into a collaboration of a similar nature with Ashok Leyland.

...& ANALYSIS

  • The programme also envisages development of infrastructure linkages like power plants, assured water supply, among others
     
  • However, experts are skeptical about the success of LNG vehicles as did not move the way they should have when CNG was introduced
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