The new engine features the Westport WP580 Engine Management System (EMS) and is designed to support various configurations.
The EMS is scheduled to be applied to Tata Motors' 5.7 litre engine for medium commercial vehicles in late 2014, the two companies said in a joint statement.
"By combining our unique technology and Tata's leadership in India's commercial vehicles market, we are able to introduce new natural gas products and target the mainstream transportation markets in one of the world's fastest-growing markets for natural gas vehicles," Westport Executive Vice President Thomas Rippon said.
He claimed the Westport WP580 offers 'breakthrough price, performance, and flexibility' for original equipment manufacturers, allowing them to use the advanced technology even in cost-effective markets such as China and India.
"India has one of the largest natural gas light-duty vehicle fleets in the world and we see an enormous opportunity for natural gas trucks and buses with the development of fuelling infrastructure," Tata Motors Head Power Systems Engineering, ERC Rajendra Petkar said.
By expanding the portfolio of natural gas engines, the company is focused on increasing market share in this category of vehicles and engines, he added.
The two companies said their new system has been designed to meet Euro VI emission standards.