Union Govt writes to States, UTs for speedily approving pending, new gas pipeline projects

The Union Government has written to State governments and Union Territories urging them that pending applications for laying of city gas distribution pipelines (CGD) be given deemed approval and new applications be accorded approval within twenty-four hours, Sujata Sharma, Joint-Secretary at the Ministry of Petroleum and Natural Gas (MoPNG) told reporters here in an inter-ministerial briefing here Tuesday (March 17, 2026).  

Additionally, Ms. Sharma informed that the Union Govt has also urged that the respective governments waive off road restoration and permission charges and relax working conditions, among other things.  

“The [Union] Government has written to governments of States and union territories requesting them that all pending applications for laying of pipelines be accorded ‘deemed approval’, new applications be approved within twenty-four hours,” she stated, adding, “Further, the road restoration and permission charges – that are levied by the respective State governments – be waived off, instituting a relaxation on working hours and working season, and appoint a nodal officer for better coordination and faster rollout.”

Separately, in response to a query, she told reporters that domestic LPG production has increased 38% till date since the supply maintenance orders were issued.  

Further, Rajesh Kumar Sinha, Special Secretary at the Ministry of Shipping and Waterways also informed that the six tankers presently at the Western part of the Strait of Hormuz, are carrying at an average of 45,000 metric tonnes of the cooking gas, totalling to approximately 3 lakh metrictonnes.  

For context, the underlined actions are part of the government’s broader objective to prompt a supportive infrastructure to prompt consumers for a switch to piped natural gas (PNG), to ease off pressure off liquified petroleum gas (LPG) which faces continued pressure amidst the escalating tensions in West Asia. India imports 60% of its LPG requirements, of which 90% is routed through the Strait of Hormuz.  

Essential to note, at the press briefing Monday (March 16, 2026), Ms. Sharma had also informed that several CGD companies were providing incentives to promote the potential transition. For example, distributors Indraprastha Gas Ltd (IGL) and GAIL Gas, are offering ₹500-worth of free gas to domestic consumers; Mahanagar Gas Ltd is seeking to waive off the mandatory registration charge of ₹500 for domestic consumers, and Bharat Petroleum looking to waive off security deposits for all potential commercial piped connections. 

For context, according to data from the Petroleum and Natural Gas Regulatory Board (PNGRB), as of September end last year, it had authorised laying of approximately 34,200 km of natural gas pipelines. Of this, 25,293 km has been made operational with 9,954 km under construction. 

PNGRB waives off imbalance charges 

From the perspective of the supply, the regulator informed, considering the “prevailing geopolitical crisis”, that it has decided to waive off imbalance charges applicable to relevant entities, shippers and consumers until June 30 – with immediate effect.  

“This waiver is being allowed as a temporary relief measure in light of the extraordinary circumstances arising out of the current geopolitical situation in the Gulf countries, which has adversely impacted supply conditions and operational balancing,” the notice read, adding, “During the aforesaid period, no imbalance charges shall be levied on concerned entities/shipper in respect of gas scheduling/offtake/transportation/balancing subject to compliance with all other terms and conditions, regulations, and operational requirements.”  

For context, imbalance charges are levied on the concerned entities for ineffective utilisation of natural gas pipelines.