Ahmedabad: Even as environmentalists, the Supreme Court and the central government are yet to reach a consensus on the merits of compressed natural gas (CNG) as an alternative fuel, Gujarat State Petroleum Corporation (GSPC), one of the few profit-making public sector units of India, has decided to foray into the field of CNG and PNG (piped natural gas).

GSPC, which is currently in the process of laying a pipeline grid for the transportation of gas, is venturing into CNG in an attempt to become a complete energy company. “We are setting up a CNG station and are also venturing into gas distribution and retailing,” says GSPC managing director D J Pandian.

Initially, one CNG and one PNG station have been planned for Hazira. With the support of the state government, a CNG refuelling station is being set up in Ichchapore village, along the Surat-Hazira road, which is slated to be commissioned by December 2002. The work on the PNG segment is also in the final stages.

“Later, as the CNG business becomes commercially viable, we will explore the franchisee route to further it,” adds Pandian. GSPC also plans to set up a large chain of CNG refuelling stations across the state by 2004.

The project is expected to cut down the fuel expenses for long-distance buses of Gujarat State Road Transport Corporation and Ahmedabad Municipal Transport Services. Besides, private vehicles are also expected to opt for CNG, once it is freely available.

How far the CNG business contributes to GSPC’s revenues remains to be seen, but, as of now, the company is fairly confident of achieving a 50-per cent hike in its overall earnings, as compared to the previous fiscal.

GSPC clocked a net profit of Rs 114.5 crore for the year ended 31 March 2002 on a turnover of Rs 239 crore. “We hope to close the financial year 2002-03 with a 50-per cent increase in profit, having earmarked a figure of Rs 300 crore,” says Pandian.