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 GAIL (India) Limited, to provide infrastructure facilities for supply of Natural Gas to Indian Railways Workshops, Production Units and Depots 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 the 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 the potential to replace about 844027 cubic meters 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 the implementation of Natural Gas in Railway workshops by 30th September 2018.