The Government of India, through the Ministry of Petroleum and Natural Gas, has notified the Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026 under the Essential Commodities Act, 1955. The Order provides a streamlined and time-bound framework for laying and expanding pipelines across the country, addressing delays in approvals and access to land, and enabling faster development of natural gas infrastructure, including in residential areas.

Published in the Extraordinary Gazette of India, the Order comes into immediate effect and establishes a comprehensive, transparent, and investor-friendly framework for efficient gas distribution, rapid infrastructure expansion, and equitable access to cleaner energy.

The Order aims to facilitate the expansion of piped natural gas (PNG) networks, improve last-mile connectivity, and promote a shift towards cleaner fuels for cooking, transport and industrial purposes, thereby strengthening energy security and supporting India’s transition to a gas-based economy.

Policy Rationale

India’s growing energy demand and evolving global energy landscape necessitate a resilient, diversified, and efficient energy system. This Order addresses longstanding challenges in infrastructure development, regulatory uncertainty, and delays in approvals, while positioning natural gas as a key transition fuel.

At its core, the reform is designed to significantly improve ease of doing business by simplifying procedures, reducing regulatory bottlenecks, and creating a predictable and transparent operating environment for stakeholders.

Key Features of the Reform

1. Transparent and Predictable Regulatory Framework

• Establishes a clear, uniform framework for laying, building, operating, and expanding pipeline infrastructure.
• Introduces standardized processes and timelines, reducing ambiguity and administrative discretion.

2. Major Boost to Ease of Doing Business

• Time-bound approvals with deemed approval provisions to eliminate procedural delays.
• Single, harmonized framework across jurisdictions to reduce fragmentation in permissions.
• Elimination of arbitrary levies and charges, ensuring transparency and cost predictability.
• Defined compensation and restoration mechanisms (“dig and restore” / “dig and pay”) to avoid disputes with local authorities.
• Reduced compliance burden through simplified procedures and clear documentation requirements.

3. Accelerated Pipeline Infrastructure Development

• Facilitates seamless access for authorized entities to lay and expand pipelines.
• Ensures faster rollout of City Gas Distribution (CGD) networks and trunk pipelines.
• Supports last-mile connectivity and rapid scaling of piped natural gas (PNG).

4. Operational Flexibility and Certainty

• Provides clarity in handling operational issues, including disruptions and access constraints.
• Introduces safeguards such as bank guarantees to ensure accountability without imposing excessive financial burden.

5. Consumer-Centric Service Delivery

• Enables time-bound provision of PNG connections, improving service delivery standards.
• Facilitates a gradual transition from LPG to PNG in areas where pipeline infrastructure exists.
• Provides flexibility where connectivity is not technically feasible.

6. Safeguarding Public Interest

• Prevents unreasonable denial of access for pipeline development by local bodies or private entities.
• Establishes a transparent dispute resolution mechanism through designated authorities.
• Balances consumer convenience with national priorities of energy security and clean energy transition.

Expected Impact

1. Enhanced Energy Security: Strengthens and diversifies the gas distribution network, reducing dependence on single fuels.
2. Improved Ease of Doing Business: Faster approvals and regulatory certainty will boost investor confidence.
3. Infrastructure Expansion: Accelerated rollout of pipeline networks across urban and semi-urban areas.
4. Cleaner Environment: Increased adoption of natural gas for cooking, transport as well as industrial purposes will contribute to improved air quality and lower emissions.
5. Economic Growth: Reliable and affordable energy supply will support industrial and commercial activity.

Government’s Commitment

The Government remains committed to expanding the role of natural gas in India’s energy mix and fostering a policy environment that promotes investment, innovation, and sustainability.

This Order marks an important step towards building a gas-based economy, supported by efficient infrastructure, ease of doing business, and wider access to clean energy.

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MONIKA

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