Mahanagar Gas signs letter of Intent with TFD for CNG dispensing

Mumbai-based IoT-based start-up, The Fuel Delivery (TFD) on Tuesday announced signing a letter of intent (LoI) with Mahanagar Gas (MGL) to deliver CNG Composite Dispensing Unit (CDU) in Mumbai. The CNG CDU will provide hassle-free doorstep delivery of CNG. TFD has received approval from MGL to operate two CDUs in Mumbai, to begin with. The service will start in the next three months from Sion and Mahape in Mumbai and will gradually be extended to the other parts of the city, the company said in a statement.   

The company added that with the doorstep CNG delivery customers will be able to refuel their vehicles without having to spend hours in the queues of the CNG stations. MGL’s CDU has followed due processes and completed trial runs after receiving initial clearance from Petroleum and Explosives Safety Organisation (PESO). CNG offers attractive savings of about 59 percent and 30 percent over petrol and diesel respectively apart from being environmentally safer. Increasing diesel and petrol prices make CNG an attractive alternative therefore the city is seeing a 10 percent increase in CNG vehicles every year. As per an estimate, Mumbai consumes about 43 lakh kg per year of CNG through 5 lakhs plus vehicles. The city has only 223 stations

Rakshit Mathur, Founder and CEO of The Fuel Delivery said, “After successfully carrying out the doorstep delivery of diesel across the country, we are taking a step forward by announcing the CNG doorstep delivery.  The doorstep delivery of CNG will give a significant push to the vehicle owners of Mumbai to shift to CNG, and refuel their vehicles at the ease and comfort of their place closer to their homes or office and steadily expand it to the other cities in the near future”

The Fuel Delivery is delivering diesel across industries like real estate, hospitality, retail, logistics and warehousing, agriculture etc. Currently, the company claims to cater to more than 500 B2B customers across segments. The start-up has raised a seed funding of around $1 million and it further aims for Series A–Funding, it added.