MoU signed between Indian Railways—GAIL (India) Ltd., for use of natural gas in railway workshops

In order to replace Industrial gases like Dissolved Acetylene, LPG, BMCG and Furnace Oil / High Speed Diesel (HSD) oil with environment friendly Natural Gas, Indian Railways has signed a Memorandum of Understanding (MoU) with M/s GAIL (India) Limited, to provide infrastructure facilities for supply of Natural Gas to Indian Railways Workshops, Production Units and Depots. This MoU is a broad based, in principle agreement, between GAIL and Indian Railways for creation of infrastructure and supply of CNG/LNG/PNG for both industrial and domestic purposes. Out of 54 workshops and PUs, 23 workshops have been identified in the first phase for replacement of Industrial Gases with Natural Gas. In domestic segment, in Railway colony, Bhubaneswar, about 1100 houses have been provided with D-PNG supply. The use of Natural Gas has potential to replace about 844027 cubic meter of Acetylene, 2354425 Kg of LPG and 140991 Kg of BMCG and 5500 KL of HSD/Furnace oil worth Rs. 70 crore per annum. Replacement by Natural Gases is likely to result into a saving of about Rs. 20 crore per annum to Indian Railways. All 23 workshops are directed to start using Natural Gas by 31-12-2018, and further all 54 workshops and production units should be covered by 30-07-2019. All railway establishments, including base kitchens of IRCTC, all guest houses and hostels and railway divisions are further directed to start using Natural Gas by 30-09-2019. GAIL and IROAF would prepare a report on implementation of Natural Gas in Railway workshops by 30-09-2018.

The huge benefits to the environment by reducing harmful greenhouse emissions, the replacement of industrial gases and furnace oils with Natural Gas also results in cost benefits with potential for huge savings which has been estimated to the order of Rs. 20 Crs. per annum over all Workshops/ Production Units/ Depots & residential colonies of Indian Railways.

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