India’s Petroleum and Natural Gas Regulatory Board (PNGRB) has unveiled an ambitious roadmap to strengthen the country’s city gas distribution (CGD) network, setting a target of 126.3 million piped natural gas (PNG) connections and 18,336 compressed natural gas (CNG) stations by 2034. This goal aligns with India’s broader clean energy transition agenda and is designed to ensure affordable, reliable, and environment-friendly energy access for households, industries, and transportation.

To achieve this vision, PNGRB is intensifying its engagement with states, holding meetings with state leadership to address operational and regulatory bottlenecks. A major focus area has been the rationalisation of VAT on natural gas, which varies significantly across states, often discouraging uniform adoption. The regulator has also encouraged states to introduce comprehensive CGD policies to streamline licensing, land allocation, and infrastructure expansion.

As of July 2025, 11 states — including Uttar Pradesh, Tamil Nadu, Karnataka, Bihar, and Rajasthan — have notified formal CGD policies. Together, these states have been assigned nearly 78.5 million PNG connections and over 10,131 CNG stations as part of the 2034 targets. This state-level alignment is crucial, as the demand for natural gas is expected to surge with rising urbanisation, economic growth, and the government’s push for clean mobility solutions.

The results of policy interventions are already visible. Between March 2023 and March 2025, the number of CNG vehicles rose by almost 25%, reaching 8.2 million nationwide. This growth significantly boosted demand, with gas sales rising by 21% in 2024–25. During the same period, 1,206 new CNG stations were commissioned, improving access for consumers across urban and semi-urban regions.

In addition, the residential and commercial segments also witnessed remarkable progress. Approximately 2.1 million new PNG connections were added nationwide during 2024–25, resulting in an 11% growth in gas sales. This expansion highlights the growing acceptance of piped natural gas as a safe, reliable, and environmentally friendly energy source, reducing dependence on traditional fuels like LPG cylinders and firewood.

Despite the progress, PNGRB has underlined the need to streamline state-level policies and tax structures further. Uneven VAT rates on natural gas remain a key hurdle, with some states levying higher taxes, making natural gas less competitive compared to other fuels. Addressing this challenge is expected to be critical for sustaining the growth momentum.

Moreover, the regulator is working to attract greater private and foreign investment in the sector, ensuring adequate funding for infrastructure projects such as pipelines, CNG stations, and gas processing facilities. With the right policy environment, India’s natural gas ecosystem is poised to play a central role in achieving the government’s clean energy targets.

By setting long-term milestones such as 126 million PNG connections and 18,000+ CNG stations, India is laying the foundation for a sustainable energy future. The expansion of PNG and CNG infrastructure will not only help reduce urban air pollution but also create new opportunities in manufacturing, logistics, and services linked to the natural gas value chain.

As PNGRB continues its efforts, collaboration between the central government, state governments, and private sector will be vital. If the current growth trajectory continues, India is likely to achieve — and possibly exceed — its targets, positioning itself as a global leader in the adoption of clean fuel infrastructure by 2034.

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