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PIB+BACKGROUND: City Gas Distribution (CGD)

PIB+BACKGROUND: City Gas Distribution (CGD)

  1. Hon’ble Prime Minister to lay Foundation Stones of City Gas Distribution (CGD) Projects in 65 Geographical Areas (GAs) in 129 Districts under the 9th CGD Bidding Round. (Ministry of Petroleum & Natural Gas)

The Prime Minister would lay the Foundation Stones of City Gas Distribution (CGD) Projects in 65 Geographical Areas (GAs) in 129 districts under the 9th CGD Bidding Round recently awarded by PNGRB (Petroleum and Natural Gas Regulatory Board).

 This might herald the availability of convenient, environment-friendly and cheaper natural gas for nearly half of the country’s population spread across 26 States and Union Territories upto 9th round.

During the event, Hon’ble PM would also launch 10th CGD Bidding Round in 50 Gas spread over 124 districts in 14 states.

CGD Network:

  • Govt of India puts thrust to promote the usage of environment friendly clean fuel i.e. natural gas as a fuel/feedstock to move towards a gas based economy.
  • Development of CGD networks focuses to increase the availability of cleaner cooking fuel (i.e. PNG) and transportation fuel (i.e. CNG) to the citizens.
  • The expansion of CGD network will benefit the industrial and commercial units by ensuring the uninterrupted supply of natural gas.

At Present:

  • 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.

Why Natural Gas:

  • Natural Gas is a superior fuel, environment friendly, safe and cheaper when compared to coal and other liquid fuels.
  • Natural Gas is supplied through pipelines just like water from the tap. Hence, its saves space by not using cylinders.
  • Natural Gas (as CNG) is cheaper by 60% as compared with petrol and 45% w.r.t. Diesel.
  • Natural Gas (as PNG) is cheaper by 40% as compared with market price LPG.
  • An auto-rickshaw owner can save Rs. 7000-8000 on his monthly fuel bill by conversion from petrol to CNG.

Share of Natural Gas in India’s energy basked is 6.2% as against 23.4% globally. The Gujarat state itself has 25%.

If Gujarat can achieve share of gas consumption more than global average, rest of India can also.


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.

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.