Press Information Bureau
Government of India
Ministry of Railways
30 AUG 2018 4:58PM by PIB Delhi
Indian Railways and GAIL (India) Limited sign an MoU for Use of Natural Gas in Railway Workshops and Production Units

 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 today at Rail Bhavan in presence of Shri Ashwani Lohani, Chairman, Railway Board & Shri B. C. Tripathi, CMD GAIL.

The MoU was signed by Shri Chetram, CAO/ Indian Railway Organization for Alternate Fuels (IROAF) on behalf of Indian Railways and Shri Gajendra Singh, Director (Marketing) from GAIL (India) Limited.

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.

Speaking on the occasion, Shri Ashwani Lohani, Chairman Railway Board directed that all 23 workshops should start using Natural Gas by 31st December 2018, and further that all 54 workshops and Production Units should be covered by 30th June 2019. Chairman Railway Board further directed that all railway establishments, including base kitchens of IRCTC, all guest houses and hostels and Railway divisions should start using Natural Gas by 30th June 2019. It was also decided that GAIL and IROAF would prepare a report on implementation of Natural Gas in Railway workshops by 30th September 2018.



The pilot project at Matunga workshop and Kota Workshop has been commissioned and supply of Natural Gas has commenced. The Carriage Repair Work Shop at Matunga has begun using CNG in place of Dissolved Acetylene/LPG and expected saving are Rs 20 lakhs per annum. Similarly the use of Natural Gas in lieu of Industrial Gases has also commenced in Kota Workshop of West Central Railway, where the expected saving is Rs 21 Lakh per annum.

The use of CNG has been taken up by Rail Wheel Factory, Bengaluru and natural gas is being used in lieu of HSD in the Draw Furnace of Wheel Shop and all the three furnaces of Axle Shop, leading to a saving of 410 KL of HSD oil per month which amounts to an annual saving of Rs 8-10 Crores at RWF itself, besides, reducing the CO2 emission about by 28%.

Besides 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.