Natural Gas Adoption through Synergy between PNGRB & States/UTs

India is accelerating its transition to a gas-based economy, with the City Gas Distribution (CGD) network emerging as a key enabler of clean and sustainable energy. The Petroleum and Natural Gas Regulatory Board (PNGRB), in collaboration with State/UT governments, is spearheading this transformation to increase the share of natural gas in the national energy mix.

Key Achievements

• 307 Geographical Areas (GAs) authorized by PNGRB, covering 784 districts across 34 States/UTs (nearly 100% of India, except islands).

• Government measures: allocation of domestic gas, Public Utility status for CGD, and mandatory PNG in government housing.

• Kept PNG & CNG cost-competitive versus LPG and liquid fuels.

Targets for 2034 (Minimum Work Programme)

• 12.63 crore PNG domestic connections

• 18,336 CNG stations

• 5.46 lakh inch-km pipeline infrastructure

State-Level Engagement

• PNGRB leadership held high-level meetings with Chief Ministers, Lt. Governors, and Chief Secretaries across multiple states.

Focus areas:

• VAT rationalization on CNG/PNG

• State CGD policies for streamlined approvals & infra rollout

Progress

• 11 States/UTs have notified CGD policies (Madhya Pradesh, Bihar, Rajasthan, Tamil Nadu, Assam, Tripura, Puducherry, Karnataka, Punjab, UP, West Bengal).

• These cover 55% of India’s population & 60% of households.

• Allocated: 7.85 crore PNG connections & 10,131 CNG stations by 2034.

VAT Rationalization

• Wide disparity in VAT: 5%–20%+ across states, creating uneven consumer prices.

• PNG ranges: ₹45/SCM (Tripura) → ₹63/SCM (Uttarakhand)

• CNG ranges: ₹74.60/kg (Puducherry) → ₹103.80/kg (Uttarakhand)

Recent cuts:

• Bihar: VAT on CNG/PNG reduced to 12.5%, industrial PNG to 5%.

• Chhattisgarh: VAT reduced from 14.5% → 5%.

Adoption Trends (Mar 2023 → Mar 2025)

• CNG vehicles: ↑ from 58.61 lakh → 81.95 lakh (+25%)

• CNG stations: +1,206 stations in FY 2024-25

• Gas sales: ↑ 21% in FY 2024-25

• PNG connections: +21 lakh households in FY 2024-25

Public Transport Initiatives

• Tamil Nadu: MTC converting 1,000 diesel buses to CNG.

• Maharashtra: SRTC shifting to LNG buses.

Conclusion

The synergy between PNGRB and States/UTs is fast-tracking India’s clean energy transition. State CGD policies + VAT rationalization are improving affordability, driving adoption, and expanding infrastructure.

This coordinated effort is a force multiplier towards India’s goals of:

✅ Energy Security

✅ Environmental Sustainability

✅ Equitable Access to Clean Fuel