Indian Railways, GAIL India sign MoU for use of Natural Gas in railway workshops and production units

Aug 31, 2018 09:52 IST
Indian Railways, GAIL India sign MoU for use of Natural Gas in railway workshops and production unit

Indian Railways on August 30, 2018 signed a Memorandum of Understanding (MoU) with GAIL (India) Limited to provide infrastructure facilities for supply of Natural Gas to Indian Railways Workshops, Production Units and Depots.

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

Highlights of the MoU

• This MoU is an in-principle agreement between GAIL and Indian Railways for creation of infrastructure and supply of CNG, LNG and PNG for both industrial and domestic purposes.

• The MoU aims to replace industrial gases like Dissolved Acetylene, LPG, BMCG and Furnace Oil, High Speed Diesel (HSD) oil with environment friendly Natural Gas.

• Out of 54 workshops and production units, 23 workshops have been identified in the first phase for replacement of Industrial Gases with Natural Gas.

• All 23 workshops will start using Natural Gas by December 31, 2018, and all 54 workshops and production units will be covered by June 30, 2019.

• All railway establishments, including base kitchens of IRCTC, all guest houses and hostels and Railway divisions will start using Natural Gas by June 30, 2019.

• In domestic segment, about 1100 houses have been provided with D-PNG supply in Railway colony of Bhubaneswar.


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.

The use of Natural Gas will 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.

Other similar projects

Matunga workshop and Kota Workshop

The pilot project at Matunga workshop and Kota Workshop has already 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 savings is Rs 20 lakhs per annum. Similarly, the use of Natural Gas has commenced in Kota Workshop of West Central Railways, where the expected saving is Rs 21 Lakh per annum.

Rail Wheel Factory, Bengaluru

The use of CNG has been taken up by Rail Wheel Factory of Bengaluru and natural gas is being used instead 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 itself.


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