Search the Internet          Tips  Sites: Finance, Investment

Govt sets ground for use of LPG as auto fuel

Lola Nayar

Plagued by a crippling shortage of a non-polluting fuel, the Indian government unveiled Thursday guidelines for converting vehicles to ply on cooking gas.

Petroleum Minister Ram Naik made the announcement in Parliament, and said motorists would be able to buy the liquefied petroleum gas from 228 sites across the country.

"The Indian Oil Corporation itself has a plan to set up 116 auto LPG dispensing stations in the initial phase," he said.

The sale of LPG to motorists is expected to begin in about six months.

Naik's comments came as thousands of furious motorists in the capital plan to take to the streets Friday to protest against continuing shortages of compressed natural gas.

The CNG shortage sparked sporadic protests by drivers of buses, taxis and autorickshaws in New Delhi Thursday, leading to traffic jams. Hundreds of drivers queue up for hours every day to buy CNG from filling stations in the city.

Though the use of LPG as an automotive fuel was legalised on April 24, several private and public sector oil companies were awaiting guidelines on retrofitting of vehicles - changing diesel or petrol engines to suit LPG before setting up dispensing stations.

The state-owned IOC and Bharat Petroleum Corporation have already set up LPG fuel stations. Among the private companies that have followed suit is SHV Energy North Ltd, subsidiary of Dutch multinational SHV Energy.

Bharat Petroleum, which has 18,000 retail fuel outlets in India, had said earlier that 50 per cent of the lot could also sell LPG. In the first phase it is planning to open 12 auto LPG filling stations in the capital.

The petroleum ministry's guidelines specify that only authorised dealers would be allowed to dispense auto LPG.

The Credit Rating Information Services of India Ltd and the Credit Analysis and Research Ltd of Bombay and the Marketing and Development Research Associates and the Investment Information Credit Rating Agency of India of New Delhi will select private marketers for auto LPG.

Motorists have been told not to use domestic LPG cylinders used for cooking to ply their vehicles. They would have to get the auto LPG tank permanently fitted. The conversion kit would be certified by an approved agency.

Experts say LPG-driven vehicles are cost effective. A Maruti 800 car fitted with a 14.2 kg cylinder and costing nearly Rs 250 would run 250 km - at a rough cost of Re 1 a km.

Indo-Asian News Service

Money
Business News

Tell us what you think of this report