GreenLine to invest ₹5,000 cr to acquire LNG trucks for green logistics
NEW DELHI : Green mobility solutions provider GreenLine is planning a big-ticket expansion of its two-year-old logistics services operations, investing about ₹850 crore to add 1,000 liquefied natural gas (LNG) trucks to its fleet in this financial year. It will further invest over ₹4,000 crore in FY25 to raise LNG truck deployment by any another 5,000 units, while also exploring options for deploying electric trucks on short-haul operations.
The company, part of the Essar Group, aims to decarbonize heavy trucking in India and is receiving widespread interest for its LNG-powered freight transportation from industrial players and corporates who themselves are moving ahead on their environmental, social, and governance (ESG) vision and looking at scaling up greener initiatives. “We are already running about 250 LNG-powered trucks that are managing logistics operations of our clients and plan to deploy 1,000 LNG-powered trucks by March 2024 making an investment of about ₹85 lakh for each truck," GreenLine CEO Anand Mimani told Mint.
He added that these numbers may go up by another 5,000 trucks by FY25. “The plan for a second round of fleet expansion would be worked out only after we reach initial milestone of scaling up green truck deployment by March next year," Mimani said.
At an average investment of about ₹85 lakh per truck (on-road price), the total investment for acquiring a fleet of 6,000 LNG trucks works out to over ₹5,000 crore. So far, fleet acquisition has been done through the company’s equity.
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