Baidyanath launches India’s first private LNG station

India’s 104-year-old Ayurvedic brand Baidyanath Group has launched the country’s first private liquefied natural gas (LNG) station in Nagpur.

The B-LNG station is located at Pandhurna village near Oriental Structure Engineering, Outer Ring Road, Nagpur.

Union Minister for Road Transport and Highways Nitin Gadkari, who is the MP from Nagpur, formally inaugurated the station, with MD Suresh Sharma and directors of the company also present.

“Already, we are spending Rs 8 lakh crore on import of petrol, diesel and petroleum products which is a big challenge. LNG has many benefits as it is a cost-effective, pollution-free and alternate bio-fuel which will lower the country’s carbon footprint and also reduce the dependence on crude oil imports,” said Gadkari.

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He said that the Ministry had formulated a policy in 2009 to allow the making of bio-ethanol from molasses. Currently, ethanol is being made from surplus rice, corn and sugar preventing the waste of the agri-commodities.

The Minister added that the use of LNG in trucks and buses will provide huge benefits to the transport industry. Currently, diesel is priced at Rs 94/litre and the price of LNG is Rs 61 per kg. The price of the LNG kit (Rs 10 lakh) can be recovered in the first year of operations.

LNG offers 60 to 65 per cent saving compared to diesel.

Talking about flex engines, Gadkari said, “Decision will be taken in three months making it mandatory for automobile manufacturers particularly the four-wheelers and two-wheelers to make flex engines. Several countries like the USA, Canada and Brazil already have them. The cost of the vehicle remains the same whether it is petrol or Flex engine.”

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Customers will be able to choose flex-fuel vehicles which are designed to run on more than one type of fuel like a mixture of petrol and ethanol. Gadkari said it is his "dream to make LNG from bio-molasses”.

Pranav Sharma, Managing Director, B-LNG, said that the foray into natural gas has been Baidyanath’s long-standing dream. B-LNG plans to set up more LNG stations in Vidarbha and convert diesel to LNG trucks and buses in the first phase.