India is intensifying efforts to position natural gas as a pivotal element of its clean energy strategy, taking bold steps to promote its use across industries and urban infrastructure.
Regulatory Reforms to Encourage Adoption
The Petroleum and Natural Gas Regulatory Board (PNGRB), in partnership with the Ministry of Environment, Forest and Climate Change (MoEF&CC) and state governments, is streamlining regulations to ease the adoption of natural gas. India boost shifts for clean energy aim to make natural gas an attractive alternative by reducing compliance burdens for industries.
“Industries transitioning to natural gas will benefit from measures like relaxed inspection schedules, reduced compliance frequency, and lower regulatory burdens,” said A. Ramana Kumar, a PNGRB Member.
To address operational challenges during the energy transition, PNGRB is extending inspection intervals and simplifying requirements, ensuring industries can make the shift with minimal disruptions.
Tax Incentives Boost Affordability
To further promote natural gas, PNGRB is collaborating with state governments to standardize and reduce Value Added Tax (VAT) on Piped Natural Gas (PNG) and Compressed Natural Gas (CNG).
Maharashtra and Goa have already lowered VAT rates to 3%-4%, while Gujarat and Karnataka have capped them at 5%.
A significant proposal under discussion is the inclusion of natural gas in the Goods and Services Tax (GST) regime. “Including natural gas in GST will simplify taxation and significantly lower costs, making it more attractive for industries,” Kumar emphasized.
Financial Support for Clean Energy Infrastructure
The government is also exploring financial incentives to facilitate the transition.
The MoEF&CC, along with state authorities, is working on subsidized loans to reduce capital expenditures for clean fuel infrastructure, encouraging industries to invest in greener technologies.
Urban Air Quality Improvements Underway
Aligned with the National Clean Air Programme (NCAP), the measures aim to enhance urban air quality by reducing reliance on polluting fuels.
Plans include phasing out diesel buses in 131 cities and replacing them with cleaner alternatives, such as CNG-powered vehicles.
Ambitious Goals for a Cleaner Future
By 2030, India boost shifts for clean energy to increase the share of natural gas in its energy mix to 15%, a significant leap from current levels.
As reported by knnindia.co.in, natural gas, which emits 27% fewer emissions compared to petroleum products, is not only cleaner but also more cost-effective and efficient.
