GreenLine to Invest ₹1,500 Crore in LNG Trucking Initiative, Aiming for Significant Diesel Savings

Key Takeaways

GreenLine Mobility Solutions plans to invest Rs 1,500 crore to expand its fleet of LNG-powered trucks to 10,000 and set up 50 refuelling stations.
Replacing 10% of diesel trucks with LNG could save India $5-6 billion annually in foreign exchange and significantly lower emissions.
Despite higher initial costs, targeted policy support can enhance the commercial viability of LNG trucks in India’s freight sector.

Expansion Plans and Environmental Impact

GreenLine Mobility Solutions, a venture of Essar, is set to invest Rs 1,500 crore over the next three years to significantly enhance its fleet of LNG-powered trucks from the current 1,000 units to 10,000. Additionally, the company aims to expand its LNG refuelling station network from seven to 50 within the next two years. This initiative aligns with India’s strategy to reduce its reliance on diesel and lower freight emissions, particularly in light of rising global energy market volatility and geopolitical tensions.

Madhur Taneja, Chief Executive of GreenLine, highlighted that switching to LNG can lower fuel costs for long-haul truck operators by as much as 20%, thanks to improved mileage over diesel. LNG trucks emit approximately 25% less carbon dioxide, 85% fewer nitrogen oxides (NOx), and 95% less particulate matter compared to their diesel counterparts, making them a cleaner alternative for the logistics sector.

Prime Minister Narendra Modi has emphasized the necessity of energy security and decreasing reliance on imported oil. The transition from diesel to LNG in long-haul trucking represents a viable and scalable method to achieve these goals. Currently, diesel constitutes about 39% of India’s total fuel demand, with the country consuming 94.7 million tonnes in the fiscal year 2025-26, a significant portion derived from imported crude oil.

Taneja asserted that replacing 10% of diesel usage with LNG could yield substantial savings of $5-6 billion in foreign exchange. He stated that LNG could easily replace this proportion of diesel fuel with appropriate governmental support. GreenLine excels in providing green logistics services through its LNG and electric-powered heavy trucks across key sectors, including steel, cement, mining, fast-moving consumer goods (FMCG), and chemicals.

Moreover, addressing concerns related to range anxiety, Taneja pointed out that LNG trucks can drive up to 1,200 km on a single fill and up to 2,400 km with dual tanks. They also offer a greater load capacity, hauling 40-50 tonnes compared to the 16-20 tonnes typical of conventional diesel trucks.

While LNG trucks are initially more expensive than diesel options, Taneja believes that policy incentives similar to those available under India’s Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme could bridge the cost gap and promote LNG’s adoption in the freight market. GreenLine currently assists a wide array of industries, catering to needs across sectors such as cement, steel, metal, mining, FMCG, express cargo, oil and gas, chemicals, and consumer goods.

The push for LNG trucking is seen as a critical step towards a more sustainable and economically stable future for India’s transportation sector, offering a cleaner, cost-effective alternative to traditional diesel trucking.

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