PNGRB, MoEF&CC Push for Natural Gas Adoption with Industry-Friendly Measures

04 Dec 2024 CW Team

Natural gas, which can reduce emissions by up to 27% compared to petroleum products, not only offers environmental benefits but is also a more cost-effective and efficient alternative, making it an appealing choice for industries.

PNGRB is working to ease the transition to natural gas by relaxing inspection schedules, reducing compliance requirements, and lightening the regulatory burden on industries, as stated by A Ramana Kumar, Member, PNGRB. These changes aim to minimize disruptions and help businesses shift to cleaner fuels with fewer operational hurdles.

Additionally, PNGRB is collaborating with state governments to address VAT discrepancies on Piped Natural Gas (PNG) and Compressed Natural Gas (CNG), which currently vary across states. For instance, Maharashtra and Goa have lowered VAT to 3%-4%, while Gujarat and Karnataka have capped it at 5%. This policy is already yielding cost benefits for end-users, and PNGRB is encouraging other states to adopt similar reductions.

Another key proposal is including natural gas under the Goods and Services Tax (GST) framework, which would streamline tax procedures and reduce costs for industries. The government is also exploring financial incentives, such as subsidized loans for capital expenditure (CAPEX) related to clean fuel infrastructure, to make the transition more financially viable for industries.

These initiatives align with the National Clean Air Programme (NCAP), which aims to improve air quality in 131 non-attainment cities across India. PNGRB and MoEF&CC are also working on plans to replace diesel buses with CNG alternatives in cities with established gas infrastructure.

These measures are designed to reduce urban air pollution while promoting the use of natural gas across various sectors.

In a move to make natural gas a central element in India’s clean energy transition, the Petroleum and Natural Gas Regulatory Board (PNGRB), in collaboration with the Ministry of Environment, Forest and Climate Change (MoEF&CC) and state governments, is planning a series of industry-friendly measures to boost natural gas adoption across industries and commercial sectors. Natural gas, which can reduce emissions by up to 27% compared to petroleum products, not only offers environmental benefits but is also a more cost-effective and efficient alternative, making it an appealing choice for industries. PNGRB is working to ease the transition to natural gas by relaxing inspection schedules, reducing compliance requirements, and lightening the regulatory burden on industries, as stated by A Ramana Kumar, Member, PNGRB. These changes aim to minimize disruptions and help businesses shift to cleaner fuels with fewer operational hurdles. Additionally, PNGRB is collaborating with state governments to address VAT discrepancies on Piped Natural Gas (PNG) and Compressed Natural Gas (CNG), which currently vary across states. For instance, Maharashtra and Goa have lowered VAT to 3%-4%, while Gujarat and Karnataka have capped it at 5%. This policy is already yielding cost benefits for end-users, and PNGRB is encouraging other states to adopt similar reductions. Another key proposal is including natural gas under the Goods and Services Tax (GST) framework, which would streamline tax procedures and reduce costs for industries. The government is also exploring financial incentives, such as subsidized loans for capital expenditure (CAPEX) related to clean fuel infrastructure, to make the transition more financially viable for industries. These initiatives align with the National Clean Air Programme (NCAP), which aims to improve air quality in 131 non-attainment cities across India. PNGRB and MoEF&CC are also working on plans to replace diesel buses with CNG alternatives in cities with established gas infrastructure. These measures are designed to reduce urban air pollution while promoting the use of natural gas across various sectors.

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