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English Español India: Ministry launches new business model for CNG stations

India’s Minister of Petroleum and Natural Gas & Skill Development and Entrepreneurship, Dharmendra Pradhan, has launched a new model for setting up CNG fuelling stations.

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The new Dealer Owned Dealer Operated (DODO) model will be the basis for the expansion of CNG fuelling infrastructure across India. More than 4,600 new CNG stations are expected to open in the next 8 years.

CNG dealers will also work closely with City Gas Distribution (CGD) activities, reports the Hindu Business Line.

In the next round bidding round of CNG bidding, 53% of the country’s area and 70% of its population will have access to CGD networks. As more and more CNG stations open up, more than 10% of them may be based on DODO model.

“The country is moving towards the gas economy, as this fuel is cheaper and less polluting,” said Pradham while speaking at Petrotech 2019.

The expansion of City Gas Distribution network will lead to laying of more gas pipelines, increased production and availability of the gas, according to the Ministry.

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