Kolkata city based bio gas producing company Phoenix India Research claimed to have launched the first bio-gas fuelled bus in Kolkata keeping a flat fare of just Rs.1. All buses will have a flat fare of Rs.1 irrespective of the distance, even in excess of 40 km.

The company said they are an approved bio-gas company by the Petroleum and Explosives Safety Organisation (PESO), from West Bengal. “There are several bio-gas producers in the country, but only a handful are PESO approved,” Das claimed.

Currently the lowest fare in a Kolkata bus is Rs.6, Phoenix India Research chairman and managing director Jyoti Prakash Das added, "We are the first one to launch bio-gas bus in the entire south-east Asia. Now old buses which have run for 15 or 20 years, can also be given a fresh lease of life with this clean and cheap fuel, and we are in the process of seeking government approval for the same .. Four more buses will be rolled out in the current month and another ten by the end of this year", Das said.

The company has tied-up with Ashok Leyland to manufacture the 54-seater bus at a cost of Rs.13 lakh approximately. Das said they had conducted a three months’ trial irunning a bio-gas bus to overcome teething troubles and expressed confidence in making bio-gas buses commercially viable for both short and long distance.

“In Delhi, CNG buses cannot go on long-haul due to fuel tank constraints. We have able to overcome that hurdle. The bio-gas bus can run up to 6 km on one kg,” he said.

The first bus will run a distance of 17 km between Ultadanga and Garia in the southern fringes of the city and Phoenix India will run the bio-gas service from its Corporate Social Responsibility fund.

On the pricing and permit issues, TMC government West Bengal transport minister Suvendu Adhikari said “It is a welcome development. We will issue all support and permit by ensuring the company fulfils norms as prescribed by the law.