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December 26, 2025 | 10:36 AM
New Delhi, December 26, 2025 — AVG Logistics Limited, a leading multimodal logistics solutions provider in India, has entered into a strategic Memorandum of Understanding (MoU) with Baidyanath LNG Private Limited to accelerate the adoption of Liquefied Natural Gas (LNG)-powered transportation solutions across key industrial logistics sectors.
Under the MoU, the two companies will collaborate to promote the use of LNG as a cleaner and cost-efficient alternative fuel for heavy-duty freight movement, particularly for high-volume sectors such as steel, FMCG, cement and industrial goods.
About AVG Logistics Limited
AVG Logistics is a multimodal logistics provider offering integrated freight, express parcel, and supply chain solutions across India. With a growing emphasis on sustainability, the company has adopted clean energy vehicles and advanced technologies to deliver efficient and reliable services.
About Baidyanath LNG Private Limited
Baidyanath LNG is a specialist LNG infrastructure and fuel solutions company focused on supporting the adoption of liquefied natural gas as a fuel alternative across industrial and transportation segments.
The Indian logistics industry has been under increasing pressure to reduce dependence on traditional fossil fuels, primarily diesel, which contribute significantly to carbon emissions and rising operating costs. LNG, a cleaner-burning fuel, presents a strategic opportunity to reduce both emissions and fuel expenses for long-haul trucking and freight operations.
By exploring LNG-powered trucks and establishing LNG refuelling infrastructure along major transport corridors, AVG Logistics aims to enhance operational efficiency, fuel cost optimisation, and profit margins, while also aligning with broader environmental and energy security objectives.
Sanjay Gupta, Managing Director and CEO of AVG Logistics Limited, highlighted the importance of the collaboration:
“This partnership directly supports our focus on sustainable and profitable growth. Integrating LNG-powered fleets into our operations will allow us to improve operating efficiency, optimise fuel costs and expand margins in the medium to long term. We remain committed to offering cleaner, cost-effective logistics solutions to our customers across sectors.”
From Baidyanath LNG’s side, Director Vaddadi Subbarao emphasized the role of this agreement in expanding LNG refuelling infrastructure nationwide, ensuring reliable fuel supply along key trucking routes, and supporting India’s transition toward cleaner heavy-duty transportation.
The collaboration is expected to have multiple strategic benefits:
Operational Efficiency: LNG-powered trucks typically deliver lower per-kilometre fuel costs, which can enhance profitability for long-distance freight operators.
Environmental Sustainability: LNG combustion emits lower levels of particulate matter and greenhouse gases compared to diesel, supporting decarbonisation goals within the transportation sector.
Infrastructure Expansion: Joint efforts to build LNG refuelling stations can create a more robust fuel supply network for logistics players across India.
Industry analysts view this pact as part of a broader shift toward cleaner fuels, complementing other innovations in the logistics sector such as electric vehicle deployments and multimodal freight solutions.
AVG Logistics has already positioned itself strongly within India’s rapidly evolving logistics landscape. Its recent annual reports reveal a long-term focus on integrating LNG and electric vehicles (EVs) into its fleet as well as deploying multimodal transportation solutions, including road, rail and warehouse networks to serve diverse industrial needs.
This latest LNG pact aligns with the company’s sustainability strategy and national priorities towards cleaner fuels and improved freight efficiency, positioning AVG as a forward-thinking logistics player amid rising demand for green supply chain solutions.
While the MoU does not yet specify the commercial terms or investment outlay, both companies have indicated that detailed agreements will be negotiated in future phases once target markets and operational frameworks are defined.
As LNG infrastructure develops and LNG-compatible vehicles become more widespread, the partnership is poised to contribute to a cleaner and more cost-effective logistics ecosystem in India.
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