Priced at Rs 4.36 lakh (ex-showroom), the CNG RTVs have a fuel average of 10km/kg. With the the running costs of this vehicle being as low as Rs 1.15 per km, the company is hoping that these vehicles will be picked up government agencies for use as public transport.

Says Mr B K Chaturvedi, president of Hindustan Motors, "Its running cost is economical which is one of its attraction. They can be used as special passenger vehicles on a daily basis," he says.

The RTVs are fitted with two CNG cylinders each of 14 kg. They can cover an average of 250km with 28 kg fuel. "We perceive a heavy demand for affordable alternatives to replace the older vehicles that have to go off the roads as per the Supreme court verdict. The RTVs are versatile, safe and comfortable," says Mr Chaturvedi.

According to Mukesh Arora, assistant general manager (sales and services) HM, "We expect to sell about a total of 250 RTVs till the end of March and then about 2,500 units in the year 2001-2002."

The company has already sold 80 RTVs, mailny to schools in Delhi. The company's target segments include - schools, institutions ( including government) for carrying their staff. According to Mr Chaturvedi, they can be used as supplements to public transport such as the phatphat seva as well as serve the delivery needs of individuals, institutions and corporate houses.

Though their have been apprehensions of the engine of a CNG vehicle heating up, Hindustan Motors is confident that this problem will not occur in these vehicles. "So far, our vehicles have not faced this problem, moreover I generally believe that this problem is generally faced by those vehicles which go in for retro-fitting," says Mr Arora.

The RTV are being manufactured in their Pitampur plant near Indore. At present they are capable of producing 500 units per month, but will gradually expand their production as per the demand. The company is also weighing the option of introducing air-conditioned version. Within two month's time they would be coming out with the Euro2 version. The diesel version of the vehicles are available in Tamil Nadu, Karnataka, Madhya Pradesh, Orissa and West Bengal.