GAIL Gas Limited, a wholly owned subsidiary of GAIL (India) Limited, the pioneers of City Gas Distribution in India and Uber, the world’s largest ridesharing company, have entered into a strategic partnership to promote the usage of CNG (Compressed Natural Gas) across various cities in India. In the first leg, the initiative is being rolled out in Bengaluru in the country’s south and will subsequently be extended in other cities.
A Memorandum of Understanding (MoU) was signed this week between the two companies during the inauguration of a GAIL Gas CNG Station at Hardware Technology Park, near Bengaluru airport in the presence of Shri B.C. Tripathi, Chairman & Managing Director, GAIL (India) Limited and Chairman GAIL Gas Limited by Shri A.K. Jana, Chief Executive Officer, GAIL Gas Limited and Shri Madhu Kannan, Chief Business Officer –Emerging Markets, Uber. The initiative will provide a major stimulus to the development of a clean fuel ecosystem in India.
As part of this partnership, termed as “Hasiru Bengaluru” or “Green Bengaluru”, GAIL Gas CNG Stations and Uber will promote the adoption of cleaner fuels like CNG in Ubers in Bengaluru. As part of the agreement, GAIL Gas will provide free CNG to the first 500 cars joining under the program, capped at a maximum of INR 10,000 (USD 147) per car. GAIL Gas will be extending coupons to each of the participating Uber driver partners for INR 2500 per month for the first four months.
Uber will provide a joining award of INR 10,000 to the first 500 CNG vehicles driving with the platform. Uber will in turn, create awareness among its driver partner community on the benefits of CNG through several channels. In order to promote cleaner fuel vehicles, GAIL Gas & Uber will also be leading conversations with OEMs, auto dealers and retrofitters.
The GAIL Gas CNG station inaugurated at KIADB Hardware Technology Park, near Bengaluru Airport alone has a capacity to fuel approximately 1000 vehicles a day. The station has two compressors with 1200 standard cubic meters per hour (SCMH) Capacity each and four dispensers for refilling cars and autos. These dispensers have the capacity to refuel 8 vehicles simultaneously at any time.
Shri B.C. Tripathi, Chairman & Managing Director, GAIL (India) Limited, said, “Alliance with Uber is a major step to fulfill our commitment in making Bengaluru’s air cleaner by expanding usage of CNG across the popular taxi ridership as we move towards a gas based economy under Government of India’s vision.”
Commenting on the partnership, Shri Madhu Kannan, Chief Business Officer –India & Emerging Markets, Uber said, “We are pleased to partner with GAIL Gas to promote the use of CNG in Bengaluru. Through this partnership, we hope to demonstrate the benefits of switching to CNG and accelerate its adoption in the city. For budding and current driver partners on Uber alone, use of CNG is expected to create monthly savings of up to INR 15000 (USD 221). Together with GAIL Gas, we hope to develop a CNG ecosystem in the city with the active support of our driver partners as well as the public at large.”
To optimise uptake of CNG and improve accessibility to the fuel for Bengalureans, GAIL Gas is also making CNG available through retail outlets of other Oil Marketing Companies. Six CNG stations are already operational and new CNG stations will be opened at several locations between no and October. Overall, to cater to the demand and facilitate a strong ecosystem, 20 new CNG stations are expected to be operational by March 2019.
With diesel and petrol prices rising, CNG presents an affordable and environment friendly alternative. The cost of CNG in Bengaluru is INR 51.27 (76 cents) per kg. For vehicle owners, this can result in savings of around 60% over petrol, 50% over diesel alternatives and approximately 45% over auto LPG.
By promoting the adoption of CNG, Uber and GAIL Gas are committed to reducing vehicular pollution and congestion not only in Bengaluru but also across the country and incentivising ridesharing thereby benefiting the drivers, riders, and the country in general.
GAIL Gas is the wholly owned subsidiary of Maharatna GAIL (India) Limited and has been authorized by Petroleum and Natural Gas Regulatory Board to implement City Gas Distribution Project in Bengaluru Urban and Rural district in year 2015.
Source: GAIL (India) Limited
