Government to Fund City Gas Distribution Pipeline for Balanced Development

India: The Government will fund a USD2 billion city gas distribution pipeline project partially to link the five east Indian states in order to promote development in these regions. The 2500 km pipeline will be built by GAIL India Limited and the government has planned to contribute 40 percent of the total cost of the project, said Oil Minister Dharmendra Pradhan. The first of its kind move, in which the government is funding any such project is a part of Prime Minister’s plan for balanced development throughout the nation according to Oil Minister. The pipeline would run through the Uttar Pradesh, Bihar, Jharkhand, West Bengal and Odisha, which together account for nearly 40 percent of India’s population. 

TechSci Research depicts that Natural Gas is converted to Compressed Natural Gas (CNG) and Piped Natural Gas (PNG), is distributed to the end users through City Gas Distribution (CGD) network. Owing to availability of huge reserves of natural gas in India, its environmental friendliness and easy transportability, city gas distribution is forecast to witness robust growth in the country over the next decade. In India, major areas where CGD network is almost established include Delhi, Mumbai, and Gujarat.  City Gas Distribution is expected to play a crucial role in the growth of all sectors such as transportation, domestic, commercial and industrial in the coming years"

According to the recently published report by TechSci Research, “India City Gas Distribution Market Forecast and Opportunities, 2030”, the City Gas Distribution (CGD) market in India grew at a CAGR of 6.25% during 2013 - 2015. During 2016-2030, the country’s CGD network is anticipated to witness robust expansion on account of increasing number of vehicles coupled with rising urbanization in the country. With an increasing number of favorable initiatives taken by the Government of India in CGD sector, various companies are foraying into CGD business in different geographies across the country.