With state-backed reforms and VAT rationalisation, India accelerates its clean energy transition through rapid expansion of natural gas infrastructure.
Ambitious Gas Targets for 2034
India has set a bold target of 126.3 million PNG (piped natural gas) connections and 18,336 CNG (compressed natural gas) stations by 2034, according to the Petroleum and Natural Gas Regulatory Board (PNGRB).
- These targets are part of India’s larger push to expand natural gas infrastructure and promote cleaner fuels in both urban and rural areas.
- The PNGRB has actively engaged with multiple state governments to align policy frameworks for faster execution.
Strong Push from States and PNGRB
To remove roadblocks and ensure state-level alignment, PNGRB held consultations with chief ministers and chief secretaries from key states, including:
- Maharashtra, Uttar Pradesh, Tamil Nadu, Madhya Pradesh, Assam, Bihar, and Rajasthan
- Union Territories like Jammu & Kashmir and Andaman & Nicobar Islands
The discussions focused on:
- VAT rationalisation on CNG and PNG, to reduce consumer costs
- Formulating comprehensive state CGD (City Gas Distribution) policies
- Streamlining approvals and offering operational support
Policy Momentum Picking Up
As of July 2025, 11 states and UTs have notified CGD policies, including:
- Punjab, Uttar Pradesh, Tamil Nadu, Bihar, Madhya Pradesh, Assam, and Karnataka
PNGRB has also allocated minimum state-level targets, including:
- 78.5 million PNG connections
- 10,131 CNG stations to be established by 2034 in these states alone
This ensures accountability and local ownership of the infrastructure roadmap.
Surge in Adoption of CNG Vehicles
CNG adoption is gathering pace, aided by improved infrastructure and lower fuel costs:
- CNG vehicle count grew from 5.86 million in March 2023 to 8.2 million by March 2025
- This marks a 25% growth in one year, reflecting both supply-side improvements and rising demand
- 1,206 new CNG stations were added across India during FY2024-25
This growth also supported a 21% rise in overall gas sales in the same period.
PNG Connections Expanding Steadily
India added 2.1 million new domestic PNG connections in FY2024-25.
- This contributed to an 11% increase in national gas sales
- Urban households, especially in metros and tier-2 cities, are the primary drivers of this growth
- Infrastructure providers are focusing on streamlining last-mile delivery and improving pipeline connectivity
Cleaner Energy, Long-Term Gains
The national push for CNG and PNG aims to:
- Reduce air pollution by replacing diesel and LPG with cleaner alternatives
- Improve energy security through diversified and domestically distributed fuel supply
- Support India’s net-zero goals with scalable green infrastructure
Continued cooperation between state governments, energy companies, and regulators is essential to meet the 2034 goals.
