• The reforms aim to develop more transparent, consumer-oriented, and investment-friendly natural gas infrastructure in India anchored in the vision of One Nation, One Grid, One Tariff.

Key Reforms: 

• Streamlined Tariff Zones:  It reduces the number of Unified Tariff Zones from three to two, simplifying the transportation system.
• CNG & PNG (Domestic) Boost: Benefit of Unified Zonal Tariff of Zone 1 has been extended nationwide to Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) Domestic segments.
• Efficient Fuel Procurement Mandate: It mandates pipeline operators to procure ≥75% of annual system-use gas via long-term contracts (≥3 years). It aims to lower procurement risks, reduce transaction costs.
• Pipeline Development Reserve – A Sustainable Infra Model: It creates a Pipeline Development Reserve, using earnings from pipeline entities that exceed 75% utilization benchmark. 
  •  50% of these net-of-tax earnings will be reinvested into infrastructure development, while the remaining 50% will be passed on to consumers through tariff adjustments—creating a performance-linked, self-sustaining model for growth.