City Gas Distribution projects

GS 3: Economy | Infrastructure: Energy, Ports, Roads, Airports, Railways, etc.

Why in News?

  • Prime Minister Narendra Modi will lay the foundation stones of City Gas Distribution (CGD) projects in 129 districts from New Delhi which will herald the availability of convenient, environment-friendly and cheaper natural gas for almost half of the country’s population spread across 26 States and Union Territories.


  • To promote the usage of environment-friendly clean fuel like natural gas as a fuel across the country to move towards a gas based economy.
  • The development of city gas distribution networks has been focused to increase the availability of cleaner cooking fuel and transportation fuel to the citizens of the country.
  • The expansion of city gas distribution, CGD network will also benefit industrial and commercial units by ensuring the uninterrupted supply of natural gas.

CGD Networks as of now:

  • Till September 2018, 96 cities/districts were covered for development of CGD networks.
  • About 46.5 lakh households and 32 lakh CNG vehicles are availing the benefit of clean fuel through existing CGD networks.
  • As per commitment made by various entities in this bidding round, around 2 crore PNG (Domestic) connections and 4600 CNG stations are expected to be installed in next 8 years across the country (This expanded the coverage of CGDs to about 50% of the population over 35% of India’s area).
  • Additionally, PNGRB has also initiated the process of 10th CGD bidding round for additional 50 new GAs covering 124 districts in 14 States to increase the coverage to nearly 53% of the country’s area covering 70% of the population.


  • As per WHO database released in May 2018, India has 14 out of 15 world’s most polluted citiesin terms of PM 2.5 concentration.
  • India has made a commitment in COP21 Paris Convention in December 2015 that by 2030; it would reduce carbon emission by 33% of 2005 levels.
  • Large number of industries also consumes polluting fuels like pet coke and furnace oil which emit polluting CO2. Some of the courts recently ordered for banning use of pet coke in states within their jurisdiction.
  • Natural Gas (as CNG) is cheaper by 60 per cent as compared with petrol and 45 per cent withrest to Diesel.
  • Similarly, Natural Gas (as PNG) is cheaper by 40 per cent as compared with market price.
  • Natural gas, as domestic kitchen fuel, as fuel for transport sector and fuel for industries and commercial units, will play an imperative role in reducing carbon emission.
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