Lok Sabha Question No. 20 (UNSTARRED), answered on 2026-01-29
Subject: National Gas Grid and CGD Expansion in Tamil Nadu
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Thiru Dayanidhi Maran

## LOK SABHA

TO BE ANSWERED ON 29 th  January, 2026

## NATIONAL GAS GRID AND CGD EXPANSION IN TAMIL NADU

## 20. THIRU DAYANIDHI MARAN:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

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

- (a)  whether Tamil Nadu is connected to the National Gas Grid and whether City Gas Distribution (CGD) expansion in the State continues to rely on higher-cost LNG or LCNG supply models, if so, the details thereof;
- (b)  the status of CGD rollout in Tamil Nadu during the last three years including household PNG connections provided, CNG stations commissioned, pipeline (inch-km) laid and targets versus achievements, district-wise;
- (c)  whether Petroleum and Natural Gas Regulatory Board (PNGRB) National Drive 2.0 provides any preferential support, viability gap funding or time-bound connectivity assurance for States like Tamil Nadu that remain outside the grid, if so, the details thereof;
- (d)  whether the Government is likely to publish a time-bound roadmap for connecting Tamil Nadu to the National Gas Grid and ensuring the full benefits of "One Nation, One Grid, One Tariff" to consumers, if so, the details thereof; and
- (e) the  steps  taken  to  curb  pricing  opacity,  ensure  strict  safety  compliance  and  protect  consumer interests in Tamil Nadu under ongoing CGD expansion drives?

ANSWER पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũालय मŐ राǛमंũी ( ŵी सुरे श गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

(a) to (e) Natural gas is supplied through a network of natural gas pipelines and through City Gas Distribution (CGD) Network. Petroleum & Natural Gas Regulatory Board (PNGRB) is the authority to grant authorization to the entities to lay, build, operate or expand Gas Pipeline as per PNGRB Act, 2006.  The status of  operational  as  well  as  under  construction/  partially  commissioned  natural  gas pipelines passing through the state of Tamil Nadu is at Annexure-I .

Providing Piped Natural Gas (PNG) connections, establishment of Compressed Natural Gas (CNG) stations  and  laying  of  pipeline  infrastructure  is  part  of  the  development  of  City  Gas  Distribution (CGD) Network, which is carried out by the entities authorized by PNGRB as per their Minimum Work  Programme  (MWP)  and  techno-commercial  feasibility.  After  completion  of  12/12A  CGD bidding  round,  PNGRB  has  authorized  entities  for  the  development  of  CGD  network  in  307 Geographical Areas (GAs), covering the entire mainland area (including the state of Tamil Nadu) for the development of CGD network across the country.

PNGRB  has  authorized  18  GAs  in  state  of  Tamil  Nadu  (including  1  GA  spread  over  Andhra Pradesh, Karnataka & Tamil Nadu and 1 GA spread over Puducherry & Tamil Nadu). As per MWP, authorized  entities  have  to  provide  approx2.30  crore  PNG(D)  connections,  establish  2,825  CNG stations and lay 37, 374 inch-km pipeline infrastructure in the state of Tamil Nadu by 2032. As on 30.11.2025, authorised CGD entities have provided 1,31,745 PNG(D) connections, established 494 CNG stations and laid 18,939 inch-km pipeline in Tamil Nadu. The status of CGD progress in the state of Tamil Nadu during the last three years is at Annexure-II.

PNGRB, in collaboration  with  CGD  entities,  has  launched  the  National  PNG  Drive  2.0  from  1st January 2026 to 31st March 2026. PNGRB has informed that the initiative aims to ensure optimal utilization  of  existing  infrastructure,  promote  new  connections  and  activate  non-billed  customers, with  an  overall  objective  to  increase  the  usage  of  natural  gas  across  the  diverse  user  categories. PNGRB has also informed thatas part of PNGRB's National PNG Drive 2.0, all authorized entities in  Tamil  Nadu  are  actively  undertaking  targeted  consumer  outreach  and  promotional  initiatives which  inter  alia  includes  enhanced  stakeholder  engagement,  consumer  outreach,  and  operational focus across theGA to accelerate the adoption of domestic PNG connections.

Government have taken various steps to ensure the availability of Natural Gas to CNG (Transport)/ PNG (Domestic) sector in the country (including Tamil Nadu) which, inter-alia , includes allocating domestic  gas  on  priority  basis  to  CNG  (T)/  PNG(D);  diverting  domestic  gas  from  non-priority sectors to meet the requirement for CNG (T)/PNG(D) sector, expansion of CGD network, grant of Public  Utility  Status  to  CGD  projects,  notification  for  supply  of  domestic  gas  through  available mode (including cascade mode) for CNG(T)/ PNG(D) purpose, allocating domestic natural gas for CNG (T) and PNG (D) segments on a two-quarter advance basis, expansion of National Gas Grid Pipeline,  setting  up  of  Liquefied  Natural  Gas  (LNG)  Terminals,  Sustainable  Alternative  Towards Affordable  Transportation  (SATAT)  initiatives  to  promote  Bio-CNG,  etc.  Government  has  also notified that gas produced from discoveries in Deepwater, Ultra Deepwater and High Pressure-High Temperature areas, in any situation which may require proportionate distribution of the gas offered under the bidding process, the contractor shall offer gas to bidders belonging to CNG (T)/ PNG (D) sector on priority.

The Government have approved the revised domestic natural gas pricing guidelines in 2023 for gas produced from nomination fields of ONGC/OIL, New Exploration Licensing Policy (NELP) blocks, and  pre-NELP  blocks,  where  the  Production  Sharing  Contract  (PSC)  provides  for  Government approval of prices. Under the revised guidelines, the price of such natural gas is determined as 10% of  the  monthly  average  of  the  Indian  Crude  Basket  and  is  notified  on  a  monthly  basis.  For  gas produced by ONGC and OIL from their nomination blocks, the APM price is subject to a floor of $4.0/ Metric Million British Thermal Unit (MMBTU) and a ceiling of $6.5/MMBTU. The ceiling would be maintained for the next two financial years (2023-24 and 2024-25) and then increased by $0.25/MMBTU  each  year.  Further,  Government  also  permitted  a  premium  of  20%  over  the Administered Price Mechanism prices on gas produced from new well and well interventions of Oil and Natural Gas Corporation Limited & Oil India Limited from their nomination fields. This has led to price stability for consumers.

Further, PNGRB, has rationalised the Unified Tariff by reducing tariff zones from three to two and notified transportation tariffs of Rs. 54/MMBTU  for Zone-1 (up to 300 km) and Rs. 102.86/MMBTU for Zone-2 (beyond 300 km), effective from 01.01.2026. Zone-1 tariff has  been extended nationwide for CNG (T) and PNG (D), resulting in nearly 50% reduction in transportation charges  for  consumers  beyond  300  km.  This  reform  further  improves  affordability  and  equity  in access to natural gas.

Like  other  States/  Geographical  Areas,  CGD  entities  of  Tamil  Nadu  are  also  being  allocated domestic gas as per the extant guidelines for gas allocation to CNG (T)/ PNG(D) segments of CGD network. The retail selling price (RSP) of CNG in any GA is determined by the concerned CGD entity  authorized  by  PNGRB  after  considering  cost  of  gas  procured,  state  taxes,  tariff  and  other components.  However,  the  allocation  of  domestic  natural  gas  for  CNG(T)/  PNG(D)segments  of CGDnetwork  plays  a  crucial  role  in  determining  the  RSP  to  the  consumer.  After  considering domestic  gas  allocation,  any  additional  requirement  beyond  the  allocated  domestic  gas  is  being sourced by individual CGD entity through market priced gas.

To  enhance  pricing  transparency,  the  Government,  in  2014,  directed  all  CGD  entities  to  display break-up of CNG price at CNG stations and to furnish the break-up of PNG (D) price in invoices, indicating  Cost  of  gas  to  the  CGD  entity,  Supply  and  Distribution  Cost,  Entity's  margin,  Excise Duty, VAT, any other Tax. Further, PNGRB is mandated under the PNGRB Act to lay down safety standards for CGD networks. The entities are regulated in this regard by relevant safety standards and  guidelines  prescribed  by  PNGRB,  including  the  Technical  Standards  and  Specifications including  Safety Standards (T4S),  Integrity  Management System (IMS) for City or Local Natural Gas Distribution Networks, Codes of Practices for Emergency Response and Disaster Management Plan  (ERDMP)Regulations.  Further,  in  order  to  address  the  grievances  of  individual  consumers, every authorized CGD entity (in accordance with the PNGRB regulations) is required to create a Consumer Complaint Cell  for registration  of  complaints/grievances  personally,  over  telephone  or through e-mail (emergency contact numbers and Consumer Care numbers of all entities are hosted on  the  PNGRB  website).  The  consumers  can  also  lodge  their  grievances  24x7  to  the  public authorities on any subject related to service deliveryon Centralized Public Grievance Redress and Monitoring System (CPGRAMS) portal.

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ANNEXURE-I

## ANNEXURE REFERRED TO IN REPLY TO PART (a) TO (e) OF LOK SABHA UNSTARRED QUESTION NO. 20 TO BE ANSWERED ON 29.01.2026 REGARDING NATIONAL GAS GRID AND CGD EXPANSION IN TAMIL NADU.

Details of the Common Carrier Natural Gas Pipelines passing through the state of Tamil Nadu.

| Operational NGPL passing through the state of Tamil Nadu                                                                           | Operational NGPL passing through the state of Tamil Nadu                                                                           | Operational NGPL passing through the state of Tamil Nadu                                                                           | Operational NGPL passing through the state of Tamil Nadu                                                                           | Operational NGPL passing through the state of Tamil Nadu                                                                           | Operational NGPL passing through the state of Tamil Nadu                                                                           | Operational NGPL passing through the state of Tamil Nadu                                                                           | Operational NGPL passing through the state of Tamil Nadu                                                                           | Operational NGPL passing through the state of Tamil Nadu                                                                           | Operational NGPL passing through the state of Tamil Nadu                                                                           |
|------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|
| S. No                                                                                                                              | Name of the Natural Gas Pipelines                                                                                                  | Auth. Entity                                                                                                                       | Date of Authorization                                                                                                              | Target Date of Completion                                                                                                          | State/UT Passing through                                                                                                           | Authorised Length (Km)                                                                                                             | Capacity (MMSCMD)                                                                                                                  | Operating (Km)                                                                                                                     | Under Construction (Km)                                                                                                            |
| 1                                                                                                                                  | Cauvery Basin Network                                                                                                              | GAIL                                                                                                                               | 04.11.2009                                                                                                                         | Completed                                                                                                                          | Tamil Nadu                                                                                                                         | 240                                                                                                                                | 4.33                                                                                                                               | 242                                                                                                                                | -                                                                                                                                  |
| Under Construction NGPL passing through the state of Tamil Nadu                                                                    | Under Construction NGPL passing through the state of Tamil Nadu                                                                    | Under Construction NGPL passing through the state of Tamil Nadu                                                                    | Under Construction NGPL passing through the state of Tamil Nadu                                                                    | Under Construction NGPL passing through the state of Tamil Nadu                                                                    | Under Construction NGPL passing through the state of Tamil Nadu                                                                    | Under Construction NGPL passing through the state of Tamil Nadu                                                                    | Under Construction NGPL passing through the state of Tamil Nadu                                                                    | Under Construction NGPL passing through the state of Tamil Nadu                                                                    | Under Construction NGPL passing through the state of Tamil Nadu                                                                    |
| S. No                                                                                                                              | Name of the Natural Gas Pipelines                                                                                                  | Auth. Entity                                                                                                                       | Date of Authorization                                                                                                              |                                                                                                                                    | State/UT Passing through                                                                                                           | Authorised Length (Km)                                                                                                             | Capacity (MMSCMD)                                                                                                                  | Operating (Km)                                                                                                                     | Under Construction (Km)                                                                                                            |
| 1                                                                                                                                  | Ennore Nellore                                                                                                                     | GTIL                                                                                                                               | 02.12.2014                                                                                                                         | 30.04.2020*                                                                                                                        | Tamil Nadu                                                                                                                         | 220                                                                                                                                | 36                                                                                                                                 | 0                                                                                                                                  | 220                                                                                                                                |
| *Authorisation was cancelled vide PNGRB order dated 20.10.2022, which has been set aside by APTEL vide judgement dated 04.10.2023. | *Authorisation was cancelled vide PNGRB order dated 20.10.2022, which has been set aside by APTEL vide judgement dated 04.10.2023. | *Authorisation was cancelled vide PNGRB order dated 20.10.2022, which has been set aside by APTEL vide judgement dated 04.10.2023. | *Authorisation was cancelled vide PNGRB order dated 20.10.2022, which has been set aside by APTEL vide judgement dated 04.10.2023. | *Authorisation was cancelled vide PNGRB order dated 20.10.2022, which has been set aside by APTEL vide judgement dated 04.10.2023. | *Authorisation was cancelled vide PNGRB order dated 20.10.2022, which has been set aside by APTEL vide judgement dated 04.10.2023. | *Authorisation was cancelled vide PNGRB order dated 20.10.2022, which has been set aside by APTEL vide judgement dated 04.10.2023. | *Authorisation was cancelled vide PNGRB order dated 20.10.2022, which has been set aside by APTEL vide judgement dated 04.10.2023. | *Authorisation was cancelled vide PNGRB order dated 20.10.2022, which has been set aside by APTEL vide judgement dated 04.10.2023. | *Authorisation was cancelled vide PNGRB order dated 20.10.2022, which has been set aside by APTEL vide judgement dated 04.10.2023. |
| Partially Commissioned NGPL passing through the state of Tamil Nadu                                                                | Partially Commissioned NGPL passing through the state of Tamil Nadu                                                                | Partially Commissioned NGPL passing through the state of Tamil Nadu                                                                | Partially Commissioned NGPL passing through the state of Tamil Nadu                                                                | Partially Commissioned NGPL passing through the state of Tamil Nadu                                                                | Partially Commissioned NGPL passing through the state of Tamil Nadu                                                                | Partially Commissioned NGPL passing through the state of Tamil Nadu                                                                | Partially Commissioned NGPL passing through the state of Tamil Nadu                                                                | Partially Commissioned NGPL passing through the state of Tamil Nadu                                                                | Partially Commissioned NGPL passing through the state of Tamil Nadu                                                                |
| S. No.                                                                                                                             | Name of the Natural Gas Pipelines                                                                                                  | Authorize d Entity                                                                                                                 | Date of Authorization                                                                                                              |                                                                                                                                    | State/UT Passing through                                                                                                           | Authorised length (Km)                                                                                                             | Capacity (MMSCMD)                                                                                                                  | Operating Length (Km)                                                                                                              | Under Construction (Km)                                                                                                            |
| 1                                                                                                                                  | Kochi Koottanad Bangalore Mangalore Pipeline                                                                                       | GAIL                                                                                                                               | 31.05.2012                                                                                                                         | 31.12.2025                                                                                                                         | Kerala, Tamil Nadu, Karnataka, UT of Puducherry                                                                                    | 1104                                                                                                                               | 16                                                                                                                                 | 644                                                                                                                                | 460                                                                                                                                |
| 2                                                                                                                                  | Ennore-Thiruvallur- BengaluruPuducherry- Nagapattinam Madurai- Tuticorin Pipeline                                                  | IOCL                                                                                                                               | 10.12.2015                                                                                                                         | 31.03.2025                                                                                                                         | Tamil Nadu, Karnataka, Andhra Pradesh, UT of Puducherry                                                                            | 1431                                                                                                                               | 84.67                                                                                                                              | 1094                                                                                                                               | 337                                                                                                                                |

( Source: PNGRB)

ANNEXURE REFERRED TO IN REPLY TO PART (a) TO (e) OF LOK SABHA UNSTARRED QUESTION NO. 20 TO BE ANSWERED ON 29.01.2026 REGARDING NATIONAL GAS GRID AND CGD EXPANSION IN TAMIL NADU.

Status of CGD progress in the state of Tamil Nadu during last three years

|                 | March, 2024    | March, 2024   | March, 2024                       | March, 2025    | March, 2025   | March, 2025                       | November, 2025   | November, 2025   | November, 2025                    |
|-----------------|----------------|---------------|-----------------------------------|----------------|---------------|-----------------------------------|------------------|------------------|-----------------------------------|
|                 | PNG (Domestic) | CNG Stations  | Pipeline Infrastructure (Inch KM) | PNG (Domestic) | CNG Stations  | Pipeline Infrastructure (Inch KM) | PNG (Domestic)   | CNG Stations     | Pipeline Infrastructure (Inch KM) |
| MWPTarget       | 2,30,94,884    | 2,825         | 37,374                            | 2,30,94,884    | 2,825         | 37,374                            | 2,30,94,88 4     | 2,825            | 37,374                            |
| Pro-Rata Target | 16,07,849      | 315           | 6,825                             | 3315097        | 616           | 10968                             | 4717706          | 822              | 14897                             |
| Achievements    | 35,152         | 364           | 10,616                            | 88583          | 468           | 16573                             | 131745           | 494              | 18939                             |

Note: Including 1 GA spread over Puducherry (UT) & Tamil Nadu and 1 GA spread over Andhra Pradesh, Tamil Nadu and Karnataka ( Source: PNGRB )

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