Odisha Notifies City Gas Distribution Policy To Boost PNG And CNG Infra

The Odisha City Gas Distribution Policy, 2026, notified by the Housing and Urban Development department, seeks to accelerate implementation of piped natural gas and compressed natural gas infrastructure through a streamlined, time?bound approval mechanism. The policy intends to promote natural gas as a cleaner and environment?friendly fuel for domestic, commercial, industrial and transport sectors in line with the Viksit Odisha vision and India’s clean energy transition goals. It provides a framework to coordinate clearances and standardise permissions to speed project rollout.

The policy establishes single?window clearance mechanisms, standardised permission charges, GIS?based underground utility mapping and priority allotment of land for CNG stations and city gate stations. It also mandates inclusion of piped natural gas pipeline provisions in building plans and urban master plans to ensure future readiness. The measures aim to reduce delays and enable quicker deployment of distribution networks.

The state has authorised five city gas distribution entities — Gail India Limited, Gail Gas Limited, BPCL, Adani Total Gas and Megha Gas — to cover all 30 districts. The committed work programme plans 0.9 million (mn) domestic piped natural gas connections and 271 CNG stations, with an estimated investment potential of Rs 51 billion (bn). These targets form the roadmap for the expansion proposed under the policy.

The Housing and Urban Development department will act as the nodal department with a state?level apex committee chaired by the chief secretary and district monitoring committees headed by collectors to facilitate clearances and project monitoring. Permission and supervision charges for pipeline laying have been waived until 31 March 2027 to encourage rapid expansion. The policy emphasises safety standards, emergency response arrangements and uninterrupted supply, and promotes compressed biogas initiatives in partnership with local bodies. Official sources said the policy is expected to strengthen the state’s clean energy ecosystem, improve urban infrastructure, reduce pollution and create employment and investment opportunities.

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