Nashik, an ancient holy city in the northwest region of Maharashtra in India, is set to become another growth region for Compressed Natural Gas (CNG) vehicles as India responds to the government’s call for increased use of this cleaner and increasingly available fuel. A Times of India report states Maharashtra Natural Gas Ltd (MNGL) plans to construct 156 CNG stations in the city over the next eight years.

MGNL reportedly plans to invest Rs 1,600 crore (approx. USD 215 million) in refueling infrastructure. The state-owned public service utility won the bids under the control of the central government’s Petroleum and Natural Gas Regulatory Board (PNGRB), to supply CNG for vehicles and piped natural gas (PNG) for domestic applications in Nashik, Dhule and Sindhdurg districts.

MGNL will begin by laying over 108 km of underground steel pipeline from Jawhar to Nashik via Trimbakeshwar to draw gas from the Dabhol LNG terminal. The company is also seeking to procure land for stations, mostly by lease. When gas supply is available, five CNG stations will be constructed in Nashik to begin the refueling infrastructure rollout.

“Initially our focus will be on providing CNG for vehicles in Nashik. In the next one year we will set up at least five CNG stations to make the green fuel available for the transport sector here,” the MNGL official said.The company is also considering targeted incentives to stimulate the uptake of CNG fuel, beginning with local cabs.