Business & Finance
IGL and Northern Railway Sign Deal to Switch 22 Delhi‑NCR Sites to Piped Natural Gas
Indraprastha Gas Ltd (IGL) has entered into an agreement with the Delhi Division of Northern Railway to replace LPG and diesel use with piped natural gas (PNG) at 22 railway establishments across Delhi‑NCR. Under the deal, IGL will initially supply about 3,000 standard cubic metres of natural gas per day (SCMD), which is expected to replace roughly 500 kg of LPG and 2,500 litres of diesel consumed daily, the company said. The initiative is part of IGL’s push to broaden natural gas adoption under the government’s PNG Drive 3.0.
The conversion will cover railway facilities such as mechanised laundries, officers’ rest houses, base kitchens, running rooms, subordinate rest houses, and guard and ticket examiner lobbies in Delhi, Ghaziabad and Gautam Buddha Nagar. Five mechanised laundries at Delhi Sarai Rohilla, Old Delhi, Anand Vihar Terminal, Hazrat Nizamuddin and New Delhi will switch to PNG for their boiler operations. Other establishments included in the agreement are kitchens and accommodation facilities used by railway officials and staff.
IGL expects natural gas consumption under the arrangement to rise to 8,000–10,000 SCMD in the coming years as pipeline infrastructure and connectivity improve across its authorised areas, including Ajmer, Banda, Rewari and Muzaffarnagar. The agreement was signed on Friday in the presence of senior officials from both organisations. It aims to expand natural gas use among institutional and commercial consumers while reducing dependence on conventional fuels.
IGL Chairman Subhankar Sen said the collaboration could help Indian Railways replace a substantial quantity of LPG with natural gas and reduce its reliance on imported fuels. "This partnership brings together two major organisations committed to nation building. Indian Railways has chosen IGL as its collaborative partner to replace LPG with PNG and this MoU will facilitate the substitution of a substantial quantity of LPG with natural gas, thereby helping reduce import dependence and the associated subsidy burden," Sen said. He added that the partnership could create an opportunity to expand the transition from LPG to PNG across the wider Indian Railways network.
Delhi Division Railway Manager Pushpesh Raman Tripathi said the switch would help the national transporter lower its energy costs and indicated that PNG connectivity could be extended to railway hospitals and residential colonies in the future. "This MoU will help reduce substantial energy costs for Indian Railways and we plan to extend PNG connectivity to railway hospitals and residential colonies in the future as well," Tripathi said.
The railway agreement comes as IGL steps up efforts to expand household PNG connections under the government’s National PNG Drive 3.0. On October 28, the company announced promotional incentives, including a ₹2,000 discount on standard domestic PNG registration charges and ₹500 worth of free gas after a connection is activated. The offer is aimed at encouraging new registrations and conversions to pipeline gas across Delhi‑NCR and IGL’s other authorised areas. IGL is also conducting outreach programmes and working with resident welfare associations and apartment owners’ bodies to expand household connectivity.
IGL Managing Director Kumar Shanker said the initiative was aimed at extending pipeline‑based natural gas to more institutional consumers. He added that structured outreach and partnerships with residential associations would help accelerate household connections.
IGL operates city gas distribution networks across 34 districts in 11 geographical areas spanning Delhi, Uttar Pradesh, Haryana and Rajasthan. Its infrastructure includes more than 30,000 km of pipelines and over 1,000 CNG stations. The company serves more than 2.5 million CNG vehicles and nearly 3.5 million PNG‑connected households. The railway partnership is expected to expand the use of natural gas among institutional consumers. PNG offers a continuous pipeline supply and reduces the need to handle and store LPG cylinders and diesel. However, the actual cost and emissions benefits will depend on fuel prices, consumption patterns, end‑use efficiency and the fuels being replaced. The agreement could also provide a model for extending PNG connectivity to other railway establishments, while IGL’s household incentives are aimed at increasing adoption among domestic consumers.
Frequently asked questions
How much natural gas will IGL supply daily under the agreement?
IGL will initially supply about 3,000 standard cubic metres of natural gas per day.
Which railway facilities will switch to PNG?
Facilities such as mechanised laundries, officers’ rest houses, base kitchens, running rooms, subordinate rest houses, guard and ticket examiner lobbies, and kitchens and accommodation for railway officials and staff will switch to PNG.