PM Modi lays foundation stone of City Gas Distribution Projects

Prime Minister Narendra Modi on November 22, 2018 laid the foundation stone of City Gas Distribution (CGD) Projects in 65 Geographical Areas (GAs) in 129 districts under the 9th CGD bidding round, remotely from Vigyan Bhawan, New Delhi.

The PM also launched the 10th CGD Bidding Round in 50 GAs spread over 124 districts in 14 states. Speaking on the occasion, the Petroleum and Natural Gas Minister, Dharmendra Pradhan said that the Government is working to move towards creating a gas-based economy.

Key Highlights

Currently, the share of gas in the India’s energy mix is just over 6 per cent and the aim is to reach the 15 per cent figure, while the world average is 24 per cent.

India aims to bring down its carbon emission level and a number of initiatives have been taken in this direction such as LED bulbs, BS VI fuel, bio-energy, International Solar Alliance, Pradhan Mantri Ujjawala Yojana, and providing clean piped gas supply to more cities.

India would also be enhancing the LNG terminal capacity, renegotiating Indo-Qatar Gas deal and encouraging positive Indo-US engagement in this direction.

India is not only focussing on increasing the use and supply of gas, but also on producing gas through agro-wastes and other products and including the same into the CGD network.

India has also increased its focus on promoting the usage of environment-friendly clean fuel, natural gas as a fuel and feedstock across the country to move towards a gas based economy.

Accordingly, the development of CGD networks has been focused to increase the availability of cleaner cooking fuel such as PNG and transportation fuel (CNG) to all the citizens of the country.


The expansion of CGD network will benefit industrial and commercial units by ensuring the uninterrupted supply of natural gas.

The move will also expand the potential coverage of CGDs to about 50 per cent of country’s population, spreading over 35 per cent of the area.

Around 46.5 lakh households and 32 lakh CNG vehicles are currently availing the benefit of clean fuel through existing CGD networks.

Implementation Process

Around 96 cities and districts in different parts of the country were covered for development of CGD networks till September 2018.

As per commitment made by various entities in the 9th bidding round, around 2 crore PNG (Domestic) connections and 4600 CNG stations are expected to be installed across the country in the next 8 years.

Various pre-project activities for these GAs have already commenced and efforts are being made to commence the physical works at the site.


To boost the expansion of PNG/CNG network in India, the Petroleum and Natural Gas Regulatory Board (PNGRB) launched 9th CGD bidding round in April, 2018 for 86 Geographical Areas (GAs) covering 174 districts in 22 States/ Union Territories.

After the processing of the received bids, grants of authorisation were issued to the successful bidders to develop CGD network for 84 GAs.

Now, the PNGRB has also initiated the process of 10th CGD bidding round for additional 50 new GAs covering 124 districts in 14 States to increase the potential coverage to about 53 per cent of the country’s area covering 70 per cent of country’s population.

Natural Gas: Key Facts

Superior Fuel

  • Natural gas is a superior fuel as compared with coal and other liquid fuels, as it is environment friendly, safer and a cheaper fuel.
  • The gas is supplied through pipelines and hence, there is no need to store cylinders in the kitchen and thus saves space.

Environment Friendly Fuel

  • As per WHO database released in May 2018, India has 14 out of the world’s 15 most polluted cities in terms of PM 2.5 concentration.
  • A large number of industries also consume polluting fuels like pet coke and furnace oil, which emit polluting CO2.
  • Some of the courts recently ordered for banning the use of pet coke in states within their jurisdiction.
  • India made a commitment in COP21 Paris Convention in December 2015 that by 2030, it would reduce carbon emission by 33 per cent of 2005 levels.
  • Natural gas, as domestic kitchen fuel, as fuel for transport sector as well as a fuel for industries and commercial units, can play a significant role in reducing carbon emission.

Cost-Friendly Fuel

Natural gas such as CNG is 60 per cent cheaper when compared with petrol and around 45 per cent cheaper when compared with Diesel.

Similarly, natural gas such as PNG is 40 per cent cheaper when compared with market price LPG.

In fact, the price of PNG almost matches with that of the subsidised LPG (based on prices in Delhi).

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