DDA approves new policy for CNG station sites auction

Prices of CNG, PNG increased from today. Check for details

Prices of CNG, PNG increased from today. Check for details (Photo: IANS)

The Delhi Development Authority (DDA) on Tuesday approved a new policy for the e-auctioning of CNG station sites in the national capital.

Under the decision, taken at a board meeting chaired by Delhi Lt. Governor Anil Baijal, the DDA will allot sites to individuals or gas distribution companies through the auction mode on a license basis.

Under the new policy, the tenure of the licence has been extended for 10 years against the existing five years and the licence fee has also been fixed.


To promote green fuel in the capital city, the DDA has decided to grant a discount of 50 per cent on the value of land in fixing the reserve price. “The licence fee (reserve price) is substantially lesser in comparison to fee payable in neighbouring states,” it said in a statement.

It said that the new policy will encourage private investment by improving the environment of certainty.

“The new policy is futuristic and for ease of doing business. It allows CNG and any other non-fossil fuel. Further, only restrictions are those mandated by Petroleum and Explosives Safety Organisation (PESO) and Unified Building Bye-Laws (UBBL),” the DDA said.

A senior DDA official said that under the new policy, any gas distributing company would be eligible to participate in the auction.

The board decided to allot 25 per cent sites directly to IGL for running the station on Company Owned Company Operated (COCO) model, the official said.