Indraprastha Gas Ltd (IGL), the state-owned automotive and domestic gas retailer, intends to pump Rs 250 crore annually over the next two-three years to set up 50 new compressed natural gas (CNG) stations in the national capital region ahead of Commonwealth Games in 2010.

IGL plans to invest Rs 10 crore on each station. The company will fund the expansion from internal accruals.

IGL sells CNG to fuel vehicle engines through its 163 stations in the Capital. The company markets CNG in Delhi for Rs 18.90 per kg compared with its competitors charge Rs 22 per kg in Mumbai, and Rs 27 per kg in Gujarat, Gurgaon, Faridabad and Vijayawada.

Apart from this, IGL is also targeting expansion into areas around Delhi such as Meerut, Bulandshaher and Ghaziabad, Rohtak, Sonepat and Panipat.

IGL has plans to increase its penetration and cover up to 50% of the population in Delhi during the next three years. The company is eyeing revenue collection of Rs 900 crore this fiscal, compared to Rs 818 crore last fiscal.