More LNG trucks for Ruia-backed GreenLine
Ruia-promoted GreenLine Mobility Solutions has set a more realistic but ambitious target for the number of LNG trucks it wants to add to its fleet this fiscal.
Incorporated in 2021 and based at Essar House in Mumbai, logistics company GreenLine owns approximately 500 heavy-duty LNG-fueled freight trucks. Of these, 35 are LNG tankers and 36 carry CNG cascades (tanks).
"By the end of March 2025, we are targeting to add 1000 LNG-fueled trucks," GreenLine CEO Anand Mimani tells this report. That's an ambitious goal, albeit downgraded from the previous more ambitious target of 4000 trucks in 2024-25, which Greenline announced in a press release on April 5 (2024).
Mimani stresses that securing financing to add LNG-fueled trucks can be challenging. "Today, if a bank is willing to finance Rs100cr ($12.5m) for diesel-fueled trucks, it is willing to finance just Rs5cr ($625,000) for trucks running on alternate fuels," says Mimani.
"Banks are unsure of the resale value of such trucks (if they repossess them for loan defaults) and are being extremely cautious." GreenLine affiliate Blue Energy Motors manufactures all its LNG trucks, each fitted with an LNG engine from Fiat group company Iveco.
"Each 55-tonne truck can carry a 40-tonne payload," continues Mimani, who sees a bright future for LNG-fueled trucks in India. "All logistics companies are gradually buying these trucks," he adds.
"They are testing the market by buying one or two trucks to add to their predominantly diesel-fueled fleet." India has nearly 650 LNG-fueled heavy-duty trucks.
Delhi-based AVG Logistics and state-owned Container Corporation of India (CONCOR) have over 100 Blue Energy-manufactured trucks. Truck fleet owner Delhivery and others have about 50 manufactured by Volvo or Tata Motors.
On September 3 (2024), the government announced its Scheme for (the) Promotion of LNG-based Mobility, which calls for LNG to replace diesel in about a third of the old long-haul heavy-duty trucks and one-third of new heavy-duty vehicles. Mimani said a heavy-duty diesel truck costs approximately Rs40 lakhs ($50,000) while an equivalent LNG truck costs approximately Rs65 lakhs ($81,250).
"But LNG has a higher calorific value and gives approximately 20% more mileage than diesel," he continues. He adds that GreenLine's freight rates are similar to diesel trucks.