IGL-Northern Railway deal: 22 Delhi-NCR sites to replace daily LPG and diesel use with PNG- Details inside

Indraprastha Gas Ltd (IGL) has partnered with the Delhi Division of Northern Railway to replace LPG and diesel consumption with piped natural gas (PNG) at 22 railway establishments across Delhi-NCR.

Under the agreement, IGL will initially supply around 3,000 standard cubic metres of natural gas per day (SCMD). This is expected to replace the daily consumption of approximately 500 kg of LPG and 2,500 litres of diesel, the company said in a statement.

The initiative is part of IGL's efforts to expand natural gas adoption under the government's PNG Drive 3.0. The conversion will cover railway facilities such as mechanised laundries, officers' rest houses, base kitchens, running rooms, subordinate rest houses, and guard and ticket examiner lobbies across Delhi, Ghaziabad and Gautam Buddha Nagar.

Which railway stations and facilities will switch to PNG?

Five mechanised laundries at Delhi Sarai Rohilla, Old Delhi, Anand Vihar Terminal, Hazrat Nizamuddin and New Delhi will switch to PNG for their boiler operations.

Other establishments covered by the agreement include kitchens and accommodation facilities used by railway officials and staff.

IGL expects natural gas consumption under the arrangement to increase to 8,000-10,000 SCMD over the coming years as pipeline infrastructure and connectivity improve across its authorised geographical areas, including Ajmer, Banda, Rewari and Muzaffarnagar.

The agreement was signed on Friday in the presence of senior officials from both organisations. It is intended to expand natural gas use among institutional and commercial consumers while reducing dependence on conventional fuels.

IGL says railway partnership can reduce dependence on imported fuels

IGL Chairman Subhankar Sen said the collaboration could help Indian Railways replace a substantial quantity of LPG with natural gas and reduce its reliance on imported fuels.

"This partnership brings together two major organisations committed to nation building. Indian Railways has chosen IGL as its collaborative partner to replace LPG with PNG and this MoU will facilitate the substitution of a substantial quantity of LPG with natural gas, thereby helping reduce import dependence and the associated subsidy burden," Sen said.

He added that the partnership could create an opportunity to expand the transition from LPG to PNG across the wider Indian Railways network.

Delhi Division Railway Manager Pushpesh Raman Tripathi said the switch would help the national transporter lower its energy costs. He also indicated that PNG connectivity could be extended to railway hospitals and residential colonies in the future.

"This MoU will help reduce substantial energy costs for Indian Railways and we plan to extend PNG connectivity to railway hospitals and residential colonies in the future as well," Tripathi said.

IGL offers ₹2,000 discount to promote household PNG connections

The railway agreement comes as IGL steps up efforts to expand household PNG connections under the government's National PNG Drive 3.0.

On October 28, the company announced promotional incentives, including a ₹2,000 discount on standard domestic PNG registration charges and ₹500 worth of free gas after a connection is activated.

The offer is aimed at encouraging new registrations and conversions to pipeline gas across Delhi-NCR and IGL's other authorised areas. The company is also conducting outreach programmes and working with resident welfare associations and apartment owners' bodies to expand household connectivity.

IGL Managing Director Kumar Shanker said the initiative was aimed at extending pipeline-based natural gas to more institutional consumers. He added that structured outreach and partnerships with residential associations would help accelerate household connections.

IGL operates over 30,000 km of pipelines across 11 geographical areas

IGL operates city gas distribution networks across 34 districts in 11 geographical areas spanning Delhi, Uttar Pradesh, Haryana and Rajasthan.

Its infrastructure includes more than 30,000 km of pipelines and over 1,000 CNG stations. The company serves more than 2.5 million CNG vehicles and nearly 3.5 million PNG-connected households.

The railway partnership is expected to expand the use of natural gas among institutional consumers. PNG offers a continuous pipeline supply and reduces the need to handle and store LPG cylinders and diesel.

However, the actual cost and emissions benefits will depend on fuel prices, consumption patterns, end-use efficiency and the fuels being replaced.

The agreement could also provide a model for extending PNG connectivity to other railway establishments, while IGL's household incentives are aimed at increasing adoption among domestic consumers.

About the Author

Anjali Thakur is a Senior Assistant Editor with Mint, reporting on trending news, entertainment and health, with a focus on stories driving digital conversations. Her work involves spotting early signals across news cycles and social media, sharpening stories for SEO and Google Discover, and mentoring young editors in digital-first newsroom practices. She is known for turning fast-moving developments—whether news-driven or culture-led—into clear, tightly edited journalism without compromising editorial rigour.<br><br> Before joining Mint, she was Deputy News Editor at NDTV.com, where she led the Trending section and covered viral news, breaking developments and human-interest stories. She has also worked as Chief Sub-Editor at India.com (Zee Media) and as Senior Correspondent with Exchange4media and Hindustan Times’ HT City, reporting on media, advertising, entertainment, health, lifestyle and popular culture.<br><br> Anjali holds a Bachelor of Arts degree from Miranda House, and is currently pursuing an MBA, strengthening her understanding of business strategy and digital media economics. Her writing balances newsroom discipline with a clear instinct for what resonates with readers.