Fuel Shift: Indian Railways to Swap LPG and Diesel for PNG

Northern Railway partners with IGL to replace LPG and diesel with Piped Natural Gas across 22 sites to cut costs and emissions.

Ravi Pandey31 October 20262 min read1 viewBusiness
Fuel Shift: Indian Railways to Swap LPG and Diesel for PNG

In a significant move toward cleaner energy and cost efficiency, the Northern Railway has entered into a strategic partnership with Indraprastha Gas Limited (IGL) to transition from traditional fuels to Piped Natural Gas (PNG). This transition, formalized through a Memorandum of Understanding (MoU), will see the replacement of approximately 500 kg of LPG and 2,500 litres of diesel used daily across 22 different railway establishments.

The Scale of the Transition

The initial phase of this agreement targets a daily consumption of 3,000 Standard Cubic Metres (SCMD) of PNG. However, this is only the beginning. As infrastructure grows and connectivity expands, IGL anticipates that the demand will surge to between 8,000 and 10,000 SCMD in the coming years.

This initiative is part of the government's broader National PNG Drive 3.0, which seeks to accelerate the adoption of natural gas among commercial and institutional consumers to reduce the nation's reliance on imported fuels.

Which Sites Are Being Upgraded?

The current agreement focuses on railway establishments located in Delhi, Ghaziabad, and Gautam Budh Nagar. The first phase includes 22 designated locations, with a heavy focus on operational efficiency. Key sites include:

  • Departmental Mechanised Laundries: Facilities at New Delhi, Old Delhi, Hazrat Nizamuddin, Anand Vihar Terminal, and Delhi Sarai Rohilla will now use PNG for their boiler operations.
  • Staff and Guest Facilities: The shift covers officers' rest houses, subordinate rest houses, and running rooms.
  • Operational Hubs: Base kitchens, as well as lobbies for guards and Travelling Ticket Examiners (TTEs), are also included in the rollout.

Economic and Environmental Impact

The shift to PNG is not just about ecology; it is a calculated financial move. Pushpesh Raman Tripathi, Divisional Railway Manager of the Delhi Division, Northern Railway, noted that this agreement will help the Indian Railways substantially reduce its energy expenditures.

From the perspective of IGL, the partnership is a win for the national economy. Subhankar Sen, Chairman of IGL, highlighted that substituting LPG with natural gas helps decrease the burden of subsidies and reduces dependence on imports. He suggested that this collaboration could serve as a blueprint for a wider transition across the entire Indian Railways network.

Future Expansion Plans

The partnership is designed to grow alongside IGL's geographical reach. Future expansions are expected in areas such as:

  • Ajmer
  • Banda
  • Rewari
  • Muzaffarnagar

Furthermore, the railway administration has expressed intentions to extend PNG connectivity beyond operational sites to include railway hospitals and residential colonies.

A Pioneering Model for Collaboration

Kumar Shanker, Managing Director of IGL, described this partnership as a pioneering model of cooperation between city gas distribution companies and the Indian Railways. The MoU was signed in the presence of several senior officials, including Mohit Bhatia, Director (Commercial) of IGL.

Beyond the cost savings, the transition is expected to streamline fuel handling and ensure a more reliable supply chain, moving the railway infrastructure toward a more sustainable and cleaner energy future.

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