Parliament Parliamentary Committee
Only 78 CBG plants commissioned against target of 5,000
The Committee on Estimates examined the supply and distribution of natural gas in India to address challenges in increasing its share in the energy mix from 6% to the government's target of 15% by 2030.
Who it concerns: Ministry of Petroleum and Natural Gas (implied subject of scrutiny), industrial and domestic consumers, power sector operators, and households considering piped natural gas (PNG) adoption.
What the committee found
- Committee flagged a 20-year gap between resource assessments that delayed recognition of enhanced potential; recommended periodic assessments and a Natural Gas Action Plan with yearly targets.
- Committee noted rising import dependence (13 MMT to 27 MMT) and recommended strengthening long-term LNG sourcing, using spot procurement, and increasing domestic production.
- Committee identified that only two deep-water blocks are in production despite 39% of sedimentary basins being in deep waters; recommended expediting exploration in Category-II and III basins via financial incentives and risk-sharing.
- Committee highlighted low production from alternative sources (78 CBG plants vs 5,000 target; no commercial shale gas); recommended operationalizing more CBG plants, expediting CBM development, and evaluating shale viability.
- Committee observed that multiple taxes on natural gas (outside GST) increase costs; recommended including natural gas under GST at a suitable rate.
- Committee noted high fuel costs constraining power sector supply; recommended a flexible gas allocation framework to increase utilization of gas-based power plants.
- Committee cited high installation costs and lack of subsidies discouraging household PNG adoption; recommended mechanisms to make PNG affordable for lower-income households.
- Committee observed LNG infrastructure is concentrated on the western coast; recommended geographically balanced development and accelerating the establishment of LNG stations to reach the target of 1,000.
Also in the document
- India’s natural gas reserves are estimated at 1,094 BCM, with production increasing from 34 BCM (2014-15) to 36 BCM (2024-25).
- Only 78 Compressed Bio-Gas (CBG) plants have been commissioned against a target of 5,000.
- In 2024-25, India produced 756 million cubic metres of Coal Bed Methane (CBM) against estimated reserves of 2,600 BCM.
- 39 out of 58 gas-based power plants are connected to the national gas grid.
- 23 LNG retail stations have been set up along National Highways, with a target of 1,000 stations.
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The original document
Parliamentary Standing Committee reports (via PRS Legislative Research)
Committee report · Ref. supply-and-distribution-of-natural-gas-challenges-and-prospects
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