The Government of India through the Ministry of Petroleum and Natural Gas has notified the Natural Gas and Petroleum Products Distribution Order, 2026 under the Essential Commodities Act, 1955, establishing a streamlined time bound framework for laying and expanding pipelines nationwide. Published in the Extraordinary Gazette of India and in immediate effect, the Order seeks to address delays in approvals and land access while enabling faster development of natural gas infrastructure in residential areas. The measures aim to create a transparent and investor friendly environment for efficient gas distribution and cleaner energy access.

Central features include time bound approvals with deemed clearance provisions to eliminate procedural delays and a single harmonised framework across jurisdictions to reduce fragmentation in permissions. Standardised charges and clear documentation requirements are intended to eliminate arbitrary levies and provide cost predictability while defined compensation and restoration mechanisms will reduce disputes with local authorities. The reform also seeks to reduce the compliance burden and create predictable processes for investors and service providers.

The Order provides operational flexibility and certainty in handling disruptions and access constraints while introducing safeguards such as bank guarantees to ensure accountability without imposing excessive financial burden. It facilitates seamless access for authorised entities to lay and expand pipelines and supports faster rollout of City Gas Distribution (CGD) networks and trunk pipelines. The measures are designed to improve last mile connectivity and rapid scaling of piped natural gas (PNG) to enhance household and industrial access.

Expected impacts include strengthened energy security through a more diversified gas distribution network and improved ease of doing business as faster approvals and regulatory certainty lift investor confidence. Accelerated infrastructure expansion across urban and semi urban areas is expected to support a shift from liquefied petroleum gas to PNG where feasible, contributing to improved air quality and lower emissions. The Government has affirmed commitment to expanding natural gas in the energy mix and fostering sustainable investment.