New Delhi: The Petroleum and Natural Gas Regulatory Board (PNGRB) on Wednesday said India’s city gas distribution (CGD) network now covers 784 districts across 34 states and union territories, with a target of 12.63 crore piped natural gas (PNG) connections and 18,336 CNG stations to be achieved by 2034.
According to PNGRB, 307 geographical areas (GAs) have been authorised, accounting for nearly the entire landmass of the country. The minimum work programme (MWP) also includes 5.46 lakh inch-km of pipeline infrastructure by 2034.
The regulator said sustained engagement with state governments is critical to achieving these goals. “Over the past two years, continued engagement and dialogue with State government authorities have led to the formulation of State CGD policies across various states,” PNGRB said in a statement.
So far, 11 states and UTs including Assam, Tripura, Tamil Nadu, Puducherry, Karnataka, Madhya Pradesh, Bihar and Rajasthan have notified CGD policies or directives, covering 55% of the population and 60% of households. These states have been assigned a minimum target of 7.85 crore PNG connections and 10,131 CNG stations by 2034.
PNGRB said high and differential VAT rates continue to be a challenge, with PNG prices ranging from ₹45/SCM in Tripura to ₹63/SCM in Uttarakhand, and CNG prices from ₹74.60/kg in Puducherry to ₹103.80/kg in Uttarakhand. Recently, Bihar cut VAT on CNG and PNG from 20% to 12.5% and lowered VAT on PNG for industrial use to 5%, while Chhattisgarh reduced VAT from 14.5% to 5%.
CNG vehicle registrations rose from 58.61 lakh in March 2023 to 81.95 lakh by March 2025, registering 25% growth in FY25 over FY24. About 1,206 new CNG stations were added in FY25, while 21 lakh new PNG connections were commissioned. Overall, gas sales rose 21% in FY25, contributing to an 11% increase in total consumption.
The regulator said discussions with states such as Tamil Nadu and Maharashtra are progressing for conversion of public transport fleets to natural gas. In Tamil Nadu, 1,000 buses of the Metropolitan Transport Corporation are planned for conversion to CNG, while Maharashtra is moving to LNG for its state road transport fleet.
