Reform of consequence in energy sector

Govt push towards piped natural gas is a pragmatic step in India’s energy transition; the ministry’s order is more than a technical regulatory change

- DHANENDRA KUMAR

THE ORDER ISSUED by the ministry of petroleum and natural gas under the Essential Commodities Act, 1955, on March 24 may not grab headlines, but may be one of the most consequential reforms in India’s energy sector.

At its core, the Natural Gas and Petroleum Products Distribution Order addresses a fundamental constraint that has long held back India’s transition to a gas-based economy—the difficulty of building and expanding pipeline infrastructure. By tackling issues such as denial of land access, excessive right-of-way charges, and delays arising from fragmented approvals, the focus is being rightly shifted from policy ambition to execution.

This shift is both timely and necessary. India has, for years, articulated its intent to increase the share of natural gas in its energy mix—from around 6% to 15%. Yet, progress has been uneven. The constraint has not been supply alone, but connectivity. Without last-mile pipeline infrastructure, natural gas remains underutilised, particularly in households and small industries.

The order’s emphasis on creating a uniform national framework is therefore significant. Pipeline developers today face a patchwork of regulatory requirements across states and local bodies. Municipal authorities, residential welfare associations, and other entities often deny access to land or premises. The resulting delays and cost escalations deter investment and slow project execution.

Standardisation can change this. A predictable and time-bound approval mechanism would reduce transaction costs, improve investor confidence, and accelerate the rollout of city gas distribution networks. For an infrastructure-intensive sector, such regulatory clarity is critical.