Delhi Transport Corporation (DTC) on Wednesday signed an agreement with Indraprastha Gas Limited (IGL) for the supply of Compressed Natural Gas (CNG) to the buses operated by DTC and private vehicles in Delhi.
The agreement was signed by Vijay Kumar Bidhuri, Managing Director of DTC and AK Jana, Managing Director of IGL in presence of Transport Minister of Kailash Gahlot.
The agreement shall be operational for 10 years and would go a long way in ensuring a flawless supply of environment-friendly clean CNG for buses and other vehicles in Delhi. The decision of the Government of the National Capital Territory of Delhi (GNCTD) is seen as a major path-breaking event given the deteriorating air quality in Delhi-NCR Region.
The discount, being provided by IGL to DTC on bulk purchase of CNG for DTC buses, has been enhanced to 6.5 per cent and this would save the revenue of DTC to the tune of Rs 9.6 crore per annum. Further, an increase of rates of land usage fees with respect to hybrid CNG facilities, meant for supply of green CNG fuel to private vehicles in Delhi, shall earn revenue of Rs 2 crore per annum.
The Transport Minister said that IGL shall continue to provide CNG for DTC buses and other vehicles in the same professional manner as it used to do earlier and the relationship of DTC with IGL shall mature further with the execution of the instant agreement.
