City-gas distribution entities lag on minimum work programme: PNGRB

Authorised CGDs have provided half of their targeted PNG connections to households

Only 12 million cooking gas connections have been extended by city-gas distribution (CGD) entities so far, which is half of their total prorated commitments of 22 million connections, the Petroleum and Natural Gas Regulatory Board (PNGRB) has said.

In an emailed response to Business Standard, PNGRB said that this is the reason for issuing letters to defaulting 

entities to complete their minimum work programme (MWP) commitments and striving to open up gas infrastructure for common usage.
 

“The present progress of CGD entities is not in keeping with their commitments. Now, PNGRB is focusing on the rapid development of piped natural gas (PNG) connections, and in this regard, it initiated PNG drives from January 26 to March 31,” the regulator said in response to questions regarding its recent decision not to extend infrastructure exclusivity to Mahanagar Gas and Vadodara Gas.
 

According to existing rules, the MWPs are mandated by PNGRB and techno-commercial feasibility. Apart from providing a minimum number of PNG connections, CGD entities are required to cover all charge areas through pipelines within their marketing exclusivity periods.
 

In line with the PNGRB Act and regulations framed under it, the regulator takes action if a CGD defaults on its MWP targets.
 

“PNGRB is mandated to ensure equitable distribution of natural gas across the country. To fulfil its statutory duty, the regulatory body has authorised the whole of India (mainland) for the development of CGD networks. After the awarding of authorisation, the prime function of PNGRB is to monitor the progress committed by CGD entities,” the statement added.
 

Ambitious plans
 

To ensure the momentum of connections growth remains high and on-ground infrastructure is laid out quickly, PNGRB has been strict in enforcing the MWPs, sources said.
 

Last year, the ministry informed Parliament that authorised entities have to provide 125 million PNG connections by 2030, including in rural and urban areas based on MWP targets.
 

Expanding nationwide CGD coverage is part of the government’s target of raising India’s share of natural gas in its energy basket to 15 per cent by 2030, up from the current 6.8 per cent.
 

As a result, as many as 300 geographical areas (GAs) covering about 98 per cent of the population and 88 per cent of the total GA of the country spread over around 630 districts in 28 states and Union Territories, including rural areas, have been authorised by PNGRB by May 31, 2023, data from the Ministry of Petroleum and Natural Gas show. This was up from 2.54 million connections across 66 districts in 2013-14.
 

With the 12th round of CGD bidding concluding, and letters of intent being issued on March 4, 2024, CGD licences for the whole of India, apart from the Andaman and Nicobar Islands, and Lakshadweep, have now been issued.

Task cut out

 12 mn:  Cooking gas connections extended by city-gas distribution (CGD) entities so far

 22 mn: Total prorated commitment of connections by PNGRB

 125 mn:  Total PNG connections authorised entities have to provide by 2030, according to the ministry’s response in Parliament

 15% by 2030:  Government’s target of raising India’s share of natural gas, up from current 6%