Lok Sabha Question No. 1366 (UNSTARRED), answered on 2017-07-24
Subject: PNG Consumption
Ministry: PETROLEUM AND NATURAL GAS
Asked by: RAJESH KUMAR DIWAKAR

## LOK SABHA

## UNSTARRED QUESTION NO. 1366

## TO BE ANSWERED ON 24.7.2017

## PNG CONSUMPTION

## 1366.    SHRI RAJESH KUMAR DIWAKER:

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

## पेट्रोलियम और प्राक ृ लिक गैस मंत्री

- (a) whether the Government proposes to boost the PNG consumption in the country and if so, the details thereof;
- (b) the steps taken/being taken by the Government to attract the distribution companies to the said policy and expand their business;
- (c)  the  incentives  being  given  to  the  distributors  and  the  norms  being  relaxed  to  boost  the consumption of PNG in the urban areas; and
- (d)  whether  the  Government  has  incorporated  any  guidelines  for  allocation  of  gas  made available to the local industries, power plants before exporting to far off places which incur heavy expense over transportation and if so, the details thereof?

## ANSWER

पेट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज् य मंत्ररी )िंत्र प्र्र ारव  स्( ( श्ररी धमेन्द  र प्रधान)

## MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  IN  THE  MINISTRY  OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a) to (c): Government has established Petroleum & Natural Gas Regulatory Board (PNGRB) under  the  PNGRB  Act,  2006,  in  the  year  2007.  PNGRB  is  the  statutory  authority  to  grant authorization for the development of City Gas Distribution (CGD) network.  PNGRB identifies the Geographical Areas (GA) for the development of CGD network depending on the natural gas  pipeline  connectivity/natural  gas  availability  and  feasibility  for  grant  of  authorization  to develop  CGD  network  in  the  country.  PNGRB  grants  the  authorization  to  the  entities  for developing CGD network through competitive bidding process. PNGRB has already authorized 81 GAs across the country for the development of CGD network and identified 228 GAs to be included in future bidding rounds subject to availability of natural gas and techno-commercial viability  of  the  area.  The  Maximum  Retail  Price  (MRP)  is  being  fixed  by  the  concerned authorized CGD entity.

The Government has taken following steps to boost the Piped Natural Gas (PNG) consumption:

- (i) MoP&NG has framed policy guidelines to supply domestic gas to the CGD entities. The domestic gas is being supplied to meet entire requirement of Compressed Natural Gas (CNG) (transport)  and  domestic  PNG  segments  based  on  last  six  monthly  consumption  data  by  the respective CGD networks.
- (ii) The  Ministry  of  Urban  Development  (MoUD)  has  issued  advisory  to  the  State Governments to speed up of CNG/PNG infrastructure.
- (iii) The  Ministry  of  Labour  &  Employment  (MoLE)  has  declared  CGD  network  as  a 'Public Utility' under the Industrial Dispute Act, 1947.
- (iv) The Ministry of Defence (MoD) has issued guidelines to allow the development of PNG network into its establishments across the country.
- (v) MoP&NG has also allowed the domestic gas as PNG supplies to the approved list of Non Domestic Exempted Category (NDEC) customers.
- (vi) Government has set a target to Oil and Gas Public Sector Undertakings (PSUs) to achieve one crore PNG connections by 2019.
- (d):  At  present,  no  domestic  gas  is  being  exported  outside  the  country.  However,  the Government has accorded priority to supply domestic gas to CGD sector across the country followed by other sectors vide guidelines issued from time to time.

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