Gail Gas, Uber to Promote CNG in India
In an attempt to boost clean transportation fuel in India, Gail Gas, a city gas distribution (CGD) unit of state-owned Gail and Uber have decided to use CNG across various cities in India, Gail said June 20. In the first leg, the initiative is being rolled out in the southern India city Bengaluru before being extended to other cities.
A memorandum of understanding (MoU) was signed between the two companies during the inauguration of a Gail Gas’ CNG station at Hardware Technology Park, near Bengaluru airport in the presence of BC Tripathi, chairman, Gail; AK Jana, CEO, Gail Gas; and Madhu Kannan, chief business officer for emerging markets, Uber.
As part of this partnership, termed Hasiru Bengaluru or Green Bengaluru, Gail Gas CNG stations and Uber will promote the adoption of cleaner fuels like CNG in Uber cabs. As part of the agreement, Gail Gas will provide free CNG to the first 500 cars joining under the program, capped at a maximum of rupees 10,000/car ($147/car). Gail Gas will be extending coupons to each of the participating Uber driver partners for rupees 2,500/month for the first four months, Gail said.
"Alliance with Uber is a major step to fulfill our commitment in making Bengaluru's air cleaner by expanding usage of CNG across the popular taxi ridership as we move towards a gas based economy under government of India's vision,” Tripathi said.
Uber will provide a joining award of rupees 10,000 to the first 500 CNG vehicles driving with the platform. Uber will in turn, train its drivers on the benefits of CNG. In order to promote cleaner fuel vehicles, Gail Gas and Uber regularly engage with engine manufacturers and car dealerships.
"We are pleased to partner with Gail Gas to promote the use of CNG in Bengaluru. Through this partnership, we hope to demonstrate the benefits of switching to CNG and accelerate its adoption in the city. Together with Gail Gas, we hope to develop a CNG ecosystem in the city with the active support of our driver partners as well as the public at large,” said Kannan.
The Gail Gas CNG station inaugurated at Hardware Technology Park, near Bengaluru airport alone has a capacity to fuel 1000 vehicles/day. To optimise uptake of CNG and improve accessibility to the fuel for Bengalureans, Gail Gas is also making CNG available through retail outlets of other oil marketing companies.
According to Gail, CNG presents an affordable and environment friendly alternative to petrol and diesel. The cost of CNG in Bengaluru is rupees 51.27/kg. For vehicle owners, this can result in savings of around 60 % over petrol, 50% over diesel alternatives and approximately 45% over auto LPG.
India is trying to promote natural gas and is looking to double its share in the energy mix to 15% in next five years. Transport is expected to play an important role in boosting the demand for gas.