Nitin Gadkari pushes for gas-economy in automobile sector

In a bid to reduce the use of fossil fuels and the country's import bill,  the government is pushing for a gas economy by promoting the use of compressed natural gas, liquified natural gas and biofuels, according to the Minister of Road Transport and Highways Nitin Gadkari. 

He noted that the fuel cost is significantly lower in the “gas economy” and the additional cost associated with the vehicle can be recovered within a period of two years. Gadkari was speaking at SIAM's 64th annual session in Delhi.

India, which aims net zero target by 2070, is currently the world’s third-largest net importer of crude oil and petroleum products. It is also one of the biggest emitter of greenhouse gases. The government has set a target of 15% natural gas share in its energy mix by the end of the decade.

While highlighting India's growth in the gas sector, Gadkari said that the country will have 20,000 CNG dispensing station by 2030. Currently, there are around 6,000 CNG stations.

Recently, the government mandated the blending of compressed biogas in compressed natural gas (CNG) for transport in a phased manner from the financial year 2025-26 with a target of 5% blending from 2028-29.

CNG has now become a major fuel option in the passenger vehicle segment with most of the major mass car makers offering CNG models. A couple of months back, Bajaj Auto has recently introduced the world's first two-wheeler fuelled by CNG. 

Meanwhile, India’s oil ministry plans to encourage conversion of a quarter of heavy duty long-haul trucking fleet to LNG, as per a recent report. 

Among various alternative fuel options to reduce the dependence on fossil fuels, the government is pushing the 15% blending of methanol with diesel, targeting commercial vehicles. This is very cost effective, as per the minister.

Along with the automobile, gases such as methanol, CNG, and LNG can also be used in the construction equipment to save cost. 

"In every Rs 1,000 crore project of road construction, we spend Rs 100 crore in diesel, creating pollution," Gadkari explained.

However, a recent report released by International Energy Agency (IEA) said India is expected to be the biggest contributor to global oil demand in the second half of this decade, defying global trend in the demand for transport fuels with sharp growth.