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The Delhi Transport Corporation (DTC) has extended its agreement with the Indraprastha Gas Limited (IGL) for the supply of Compressed Natural Gas (CNG) for the next 10 years.

According to an official, the discount being provided by IGL to DTC on bulk purchase of CNG has been enhanced to 6.5 per cent.

It would save the DTC a revenue of Rs 9.6 crore per year. An agreement has been signed between IGL and DTC, said a senior DTC official on Wednesday.

As per the new agreement, the operation has been extended till 2031 and will ensure flawless supply of environment-friendly clean CNG for DTC buses.

Delhi Transport Minister Kailash Gahlot said: "IGL will continue to provide CNG for DTC buses and other vehicles in the same professional manner as it used to do earlier and the relationship of DTC with IGL will mature further with the execution of the instant agreement."

Gahlot further said the development will help in reducing Delhi's air pollution.

The Delhi Transport Department on March 26 had approved DTC's proposal to induct 300 electric-run buses in the city.

The first lot of 118 buses will arrive in October this year, while November will see an addition of 100 buses. As many as 60 buses will arrive in December, while the remaining 20 buses are likely to be received by January 2022.