New Delhi, Mar 18 (JKNS): The Ministry of Petroleum and Natural Gas has urged states to facilitate wider adoption of Piped Natural Gas (PNG) by easing charges on City Gas Distribution (CGD) infrastructure and improving the investment environment.
In a communication issued by Secretary Dr. Neeraj Mittal, as per news agency JKNS, the ministry said the PNG segment does not receive direct subsidies and relies largely on returns on investment, making it sensitive to high levies imposed by local bodies.
The ministry noted that excessive charges such as right of use (RoU), digging fees and lease rentals have adversely impacted the growth of CGD networks, discouraging investment in the sector. It stressed that rationalising such levies would not only support the expansion of clean fuel infrastructure but also enhance overall economic activity.
Highlighting the current LPG supply constraints due to the Middle East crisis, the ministry said Oil Marketing Companies are presently supplying 20 per cent commercial LPG to states and proposed increasing it to 30 per cent, subject to reforms that promote a shift towards PNG.
The Centre outlined a reform-linked incentive framework under which states can receive additional LPG allocation by implementing measures such as setting up empowered committees for CGD approvals, granting deemed permissions for pipeline projects, introducing a “dig and restore” mechanism, and reducing lease charges for CGD networks.
The ministry further said that improving ease of doing business and lowering operational costs for CGD entities would help bridge the gap between sanctioned and functional connections, thereby increasing PNG penetration and reducing long-term dependence on LPG.
States have been asked to submit proof of implementation of these reforms to avail the additional gas allocation benefits. (JKNS)
