IOAGPL to invest 4500 cr in Kerala for CGD project
11 January 2021
IndianOil-Adani Gas Pvt Ltd. (IOAGPL), which is implementing the city gas distribution project in Kerala, will be investing more than Rs 4,500 crore in CGD projects over the next five-six years.
The amount would be earmarked for setting up a 300-km steel pipeline network, besides a more than 2,500-km-long MDPE (medium density polyethylene) network along with associated facilities to provide CNG to industrial, commercial, and domestic units.
Besides, the company would set up more than 450 CNG stations to cater to the transportation sector. It has invited applications for setting CNG stations in a dealership model (Dealer owned Dealer Operated (DODO), which has started receiving an encouraging response, said Bhashit Dholakia, Senior Vice-President, and COO, IOAGPL.
According to him, the work for the construction of a steel network in Thrissur, Palakkad, Mallapuram, Kozhikode, Kannur, and Kasargod has started. A total of six CNG stations have been commissioned in Thrissur and work on 14 more stations is in progress. IOAGPL has commenced construction of the initial phase of a 39 km high-pressure steel network. Work on four CNG stations has also commenced and by March next year, 16 more CNG stations would be added, he said.
With CNG stations being set up at Ernakulam, Thrissur, Mallapuram, Kozhikode, Kannur, and Kasargod districts, Dholakia said a 400 km green corridor would be established in the state that would help replace polluting fuels with green CNG.