Parliament Question: Expansion of city gas distribution

GOVERNMENT OF INDIA MINISTRY OF PETROLEUM AND NATURAL GAS RAJYA SABHA STARRED QUESTION NO. 381 ANSWERED ON 30/03/2026 EXPANSION OF CITY GAS DISTRIBUTION *381 SHRI HARSH VARDHAN SHRINGLA: Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state: (a) progress made in expanding city gas distribution (CGD) networks, specifically to Siliguri and Darjeeling; (b) the coverage of households and industries; (c) the steps taken to ensure affordability and safety; and (d) the contribution to cleaner energy transition? ANSWER MINISTER OF PETROLEUM AND NATURAL GAS (SHRI HARDEEP SINGH PURI) (a) to (d): A statement is laid on the Table of the House.STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (D) IN RESPECT OF RAJYA SABHA STARRED QUESTION NO. 381 FOR REPLY ON 30.03.2026 REGARDING EXPANSION OF CITY GAS DISTRIBUTION ASKED BY SHRI HARSH VARDHAN SHRINGLA. (a) to (d): Providing Piped Natural Gas (PNG) connections and establishment of Compressed Natural Gas (CNG) stations is part of the development of City Gas Distribution (CGD) Network, which inter alia include creation of pipeline infrastructure and other facilities for the supply of PNG to domestic, commercial and industrial units and CNG to transport sector. This is being carried out by entities authorized by Petroleum and Natural Gas Regulatory Board (PNGRB) as per Minimum Work Program (MWP) and techno-commercial feasibility. Siliguri and Darjeeling are part of Darjeeling, Jalpaiguri and Uttar Dinajpur Districts Geographical Area (GA) authorized to Hindustan Petroleum Corporation Limited (HPCL) for development of CGD network. The authorized entities also supply natural gas to customers of commercial and industrial units in their GAs as per the demand and techno-commercial viability. As on 31.01.2026, HPCL has provided 8,442 PNG (D) connections, and laid 1,619 inch-km pipeline in the GA. Government have taken various steps to ensure the availability and affordability of Natural Gas to CNG (Transport)/ PNG (Domestic) sector in the country which, inter-alia, includes allocating domestic gas on priority basis to CNG (T)/ PNG(D); diverting domestic gas from non-priority sectors to meet the requirement for CNG (T)/PNG(D) sector, expansion of CGD network, grant of Public Utility Status to CGD projects, notification for supply of domestic gas through available mode (including cascade mode) for CNG(T)/ PNG(D) purpose, allocating domestic natural gas for CNG (T) and PNG (D) segments on a two-quarter advance basis, expansion of National Gas Grid Pipeline, setting up of Liquefied Natural Gas (LNG) Terminals, Sustainable Alternative Towards Affordable Transportation (SATAT) initiatives to promote Bio-CNG, etc. Government have also notified that gas produced from discoveries in Deepwater, Ultra Deepwater and High Pressure-High Temperature areas, in any situation which may require proportionate distribution of the gas offered under the bidding process, the contractor shall offer gas to bidders belonging to CNG (T)/ PNG (D) sector on priority. The Unified Tariff has been rationalised by reducing tariff zones from three to two and notified transportation tariffs of Rs. 54/MMBTU for Zone-1 (up to 300 km) and Rs. 102.86/MMBTU for Zone-2 (beyond 300 km), effective from 01.01.2026. Zone-1 tariff has been extended nationwide for CNG (T) and PNG (D), resulting in nearly 50% reduction in transportation charges for consumers beyond 300 km. This reform further improves affordability and equity in access to natural gas. To ensure compliance of safety standards for CGD networks, relevant safety standards and guidelines have been prescribed, including the Technical Standards and Specifications including Safety Standards (T4S), Integrity Management System (IMS) for City or Local Natural Gas Distribution Networks, Codes of Practices for Emergency Response and Disaster Management Plan (ERDMP) Regulations. Consumption of natural gas not only enhances environmental sustainability as it is a cleaner and low-emitting fuel vis-a-vis other fossil fuels but also ensures energy security by allowing (i) the country to diversify its energy mix and thereby reduce its reliance on imported oil and coal and (ii) reduce its vulnerability to the volatility of the international market.Progress of CGD networks is regularly monitored based on reports submitted by the CGD entities. If there are any delays or shortfalls, the entities are advised to take corrective action. This includes calling them for progress review meetings or statutory hearings under existing regulations to discuss challenges and the latest updates on their MWP targets in authorized GAs. In addition, Government conducts regular interactions and meetings with State Governments for the development of CGD network in respective States and address challenges in this regard. Recently, a comprehensive control order dated 24.03.2026 has been issued under the Essential Commodities Act, 1955 to facilitate time-bound expansion of pipeline infrastructure across the country, especially CGD. The Order provides a uniform framework for grant of right of way (RoW) and permissions by mandating strict timelines, enabling deemed approvals in case of delays, and prohibiting imposition of unauthorised charges by public authorities. It also addresses access issues in residential and private areas by ensuring non-discriminatory and time-bound permissions, thereby removing key bottlenecks in pipeline laying. *****