Centre Pushes Mission-Mode Expansion of PNG Network; 50 Lakh New Connections Targeted in Urban India

Union Minister for Housing and Urban Affairs, Shri Manohar Lal, positioned PNG expansion as central to India’s urban transformation agenda.

In a significant move to accelerate India’s clean energy transition and strengthen urban service delivery, the Government of India convened a high-level roundtable at Vigyan Bhavan to chart a roadmap for the rapid expansion of Piped Natural Gas (PNG) services across cities while ensuring uninterrupted essential supplies.

The roundtable, titled “Expansion of Piped Natural Gas (PNG) Services and Maintaining Essential Services”, brought together an unprecedented coalition of policymakers, industry leaders, and state authorities, signalling a coordinated push to overcome long-standing bottlenecks in city gas infrastructure development.

The meeting was attended by Union Ministers from the Ministries of Housing and Urban Affairs (MoHUA), Petroleum and Natural Gas (MoPNG), and Consumer Affairs, Food and Public Distribution (MoCAFPD), along with senior officials from the Centre and States. Municipal Commissioners, Secretaries of Urban Development and Food & Civil Supplies Departments, CMDs of GAIL and Indian Oil, and representatives of City Gas Distribution (CGD) entities also participated, highlighting the multi-layered governance required for PNG rollout.

Strong Political Backing for Urban Energy Transition

Union Minister for Housing and Urban Affairs, Shri Manohar Lal, positioned PNG expansion as central to India’s urban transformation agenda. Emphasising that cities are the primary drivers of economic growth, he called for a “mission-mode” implementation strategy to scale up PNG connectivity.

He announced an ambitious national target of 50 lakh new PNG connections, underlining the urgency to expand last-mile access and integrate gas infrastructure into urban planning frameworks. Key measures proposed included:

• Institutionalising single-window clearance systems

• Embedding PNG pipelines into city master plans

• Enhancing last-mile connectivity

• Aligning PNG rollout with ongoing flagship urban schemes

Energy Security and Global Context

Union Minister for Petroleum and Natural Gas, Shri Hardeep Singh Puri, placed the initiative within the broader context of global energy volatility and India’s push for diversified, resilient energy systems.

He highlighted that PNG offers a stable, continuous and domestically manageable energy supply, reducing dependence on cylinder-based logistics and mitigating supply disruptions. He urged States and Urban Local Bodies (ULBs) to actively promote PNG adoption, particularly in areas where trunk infrastructure is already in place, to maximise utilisation and economic viability.

Ensuring Continuity of Essential Services

Union Minister for Consumer Affairs, Shri Pralhad Joshi, stressed the importance of maintaining uninterrupted fuel supply chains, particularly during the transition phase from LPG to PNG.

He flagged risks such as misinformation, hoarding, and black marketing, and called for:

• Strengthened monitoring and enforcement mechanisms

• Clear consumer communication strategies

• Priority PNG adoption in public institutions like schools and colleges

PNG vs LPG: Cost, Safety and Sustainability Advantage

A detailed presentation by the Ministry of Petroleum and Natural Gas highlighted the growing advantages of PNG over LPG:

• Safety: Continuous supply reduces risks associated with cylinder handling and storage

• Reliability: No need for refilling or delivery logistics

• Affordability: Lower long-term cost due to pipeline distribution

• Environmental Impact: Cleaner fuel with lower emissions, contributing to urban air quality improvement

India’s City Gas Distribution network has expanded significantly in recent years, now covering hundreds of districts. However, penetration remains uneven, particularly in fast-growing urban clusters.

Key Bottlenecks: Permissions and Costs

Despite progress, stakeholders identified persistent structural challenges slowing PNG expansion:

• Delays in municipal approvals

• Complex and time-consuming Right of Way (RoW) permissions

• High road restoration charges

• Fragmented coordination between departments

These issues often lead to project delays, cost escalations, and underutilisation of existing infrastructure.

States Demand Reforms in Approval Processes

State representatives from Uttar Pradesh, Delhi, Maharashtra, Haryana, Odisha and others—along with virtual participation from Telangana, Karnataka and Rajasthan—highlighted the need for systemic reforms.

Key recommendations emerging from the deliberations included:

• Introduction of deemed approval mechanisms to avoid delays

• Rationalisation or temporary waiver of RoW and restoration charges

• Creation of time-bound, single-window clearance systems

• Appointment of nodal officers for inter-departmental coordination

There was broad consensus that policy alignment between Urban Development, Municipal Bodies, and Civil Supplies Departments is essential for seamless implementation.

Transition Strategy: From LPG to PNG

Participants agreed on adopting a phased and structured transition strategy from LPG to PNG in areas where pipeline infrastructure already exists. This would involve:

• Targeted consumer awareness campaigns

• Safeguards to ensure no disruption in essential services

• Gradual migration of high-consumption segments such as commercial kitchens and institutions

Action Plan and City-Level Execution

Following the main roundtable, a focused break-out session between CGD companies and Municipal Commissioners addressed city-specific challenges. These discussions led to the formulation of a structured action plan with:

• Defined timelines for approvals

• Formation of local task forces

• Regular monitoring and review mechanisms

This granular, city-level approach is expected to accelerate on-ground implementation and improve accountability.

A Critical Step in India’s Clean Energy Roadmap

The roundtable reflects the Government’s intent to position PNG as a cornerstone of India’s urban energy mix. With rising urbanisation—India’s urban population is projected to exceed 600 million by 2030—the demand for clean, reliable and scalable energy solutions is set to surge.

By addressing regulatory bottlenecks and fostering Centre-State coordination, the government aims to transform PNG from a limited urban utility into a mainstream household energy source, reducing reliance on LPG and supporting India’s broader climate commitments.