Delhi's Controversial Plan to Phase Out CNG Autos

The Delhi government's draft electric vehicle policy, which includes stopping the registration of new CNG autos and renewing registrations for 10-year-old CNG three-wheelers unless retrofitted with battery-electric traction, has caused concern within the city gas distribution industry. This move could potentially trigger a domino effect, jeopardizing significant investments in city gas networks across the country.

Industry Concerns and Potential Chaos

Industry representatives warn that the short lead time could disrupt public transport, with two-thirds of Delhi's approximately 90,000 autos potentially affected by the proposed deadline. The lack of a proven conversion ecosystem and charging infrastructure poses significant challenges.

Impact on City Gas Business and Investments

CNG retail is a critical segment of the city gas business, with autos accounting for a major portion of sales. The proposed changes could undermine the viability of investments in city gas networks and compressed natural bio gas plants, affecting the government's goal to increase the share of gas in the energy basket to 15% by 2030.

Call for a Gradual Transition

Experts argue for treating natural gas separately from liquid hydrocarbons as a transition fuel, emphasizing the need for a gradual shift supported by incentives, given that a significant portion of electricity for charging comes from coal.