Order notified under the Essential Commodities Act, 1955, aims to facilitate expansion of piped natural gas (PNG) networks, shift towards cleaner fuels, energy security and supporting India’s transition to a gas-based economy.
- Key Reforms: Time-bound clearances, single harmonized framework, expand City Gas Distribution (CGD) networks etc.
Gas-Based Economy
- Target: India aims to increase the share of Natural gas is a fossil fuel composed mainly of methane (CH₄)in its energy mix to 15% by 2030
- As of 2025, its share is only 6.2%.
- Natural gas is mainly composed of methane (CH₄).
- Demand Projection: Natural gas consumption is forecasted to more than double, growing from 52 MTPA in FY25 to 112 MTPA by FY40.
- Key Significance
- Decarbonization: Lowers emissions by 15-20% compared to petrol and significantly reduce particulate matter (PM), NOx, and SOx emissions.
- Energy Security: Diversifies the energy distribution network, reducing over-reliance on singular fossil fuels like imported crude oil.
- Economic Viability: LNG offers a commercially viable alternative with a clear Total Cost of Ownership (TCO) advantage over diesel for heavy-duty long-haul trucking.
Initiatives Taken of Gas-Based Economy
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