CNG in Gujarat

Vol 14, PW 21 (21 Apr 11) News in Brief

Soaring land prices in Gujarat are forcing local gas retailer GSPC Gas to rely increasingly on ‘franchise’ partners to expand its network of CNG stations across the state.

“Setting up your own station has become prohibitively expensive,” says GSPC Gas. “Land prices are going up every day.

” With 110 stations already selling CNG in its stable, GSPC Gas wants to set up 17 more with ‘franchise’ partners who each have a plot of land measuring between 2000 and 2500-sq metres, as well as Rs2cr ($450,000) to invest in CNG infrastructure and a technical team ready to run the new stations. Two new franchise stations are planned in Gandhinagar; six in Rajkot; three in Morbi; two in Surendranagar; two in Valsad and two in Navsari.

“Most of the 17 new stations will be on state highways connecting cities and towns,” adds GSPC Gas. In last 12 months GSPC Gas has set up 45 new CNG stations and sells on average 290,000-kg/day of CNG to 55,000 vehicles from its 110 CNG stations.