ADB Invests in Clean Fuels Company in India
MANILA, PHILIPPINES - ADB has invested in a joint venture company that will introduce clean fuels for vehicles and piped natural gas for domestic, industrial, and commercial users in the city of Kanpur, state of Uttar Pradesh, in India. The Rs120.0 million ($2.7 million) investment is for a 20.0% stake in Central Uttar Pradesh Gas Limited (CUGL). The shareholders agreement was signed on 30 November 2006 in New Delhi, India, establishing the company alongside GAIL (India) Limited, Bharat Petroleum Company Limited and other Indian financial investors. CUGL is currently constructing compressed natural gas (CNG) filling stations in Kanpur and other nearby towns to service cars, buses, taxis, and two- and three-wheelers that have been converted to use the gas and also a piped city gas distribution network. At present, 3 CNG filling stations have already been commissioned, and CUGL is selling an average of 13,680 kilograms of CNG per day to converted vehicles. “Following the successful implementation of similar projects in Delhi and Mumbai, this project is designed to reduce air pollution and improve ambient air quality by switching vehicles to CNG and industrial users to piped natural gas in key industrial towns such as Kanpur,” said Don Purka, Investment Specialist with the ADB’s Private Sector Operations Department. “In addition to the environmental and health benefits, natural gas is more economically viable and stable fuel source for users.” The equity investment by ADB will enhance economic growth by further developing key urban energy infrastructure networks while ensuring environmental sustainability. Providing natural gas to small-scale industries at a lower cost than alternative fuels could create jobs by increasing production or attracting energy-intensive industries to the area. The project is also expected to reduce health risks caused by using inferior fuels and decrease both indoor and outdoor air pollution. “Low-income populations are particularly exposed to transport pollution because they often live close to major roads,” said Mr. Purka. ADB actively supports private sector participation in infrastructure development, clean fuel projects and gas distribution. ADB’s board of directors approved the proposed investment in CUGL in early 2006. About ADB | 
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