New Delhi
The government on Tuesday notified a new legal framework by invoking the Essential Commodities Act (ECA) that will make it mandatory on landowners to grant “right of way” for expeditious and timebound laying of gas pipelines in the country to reduce over-dependence on any single fuel, particularly imported liquefied petroleum gas (LPG).
Elaborating “right of way” as one of the key elements of the notification, the notification said, “The Central Government considers it necessary in public interest for a uniform framework to address issues that hinder the laying of such pipelines including denial of access to land, delay in approvals, delay in grant of right of way or right of user in the land, high fee and charges, to enable entities to undertake the laying of pipelines for transportation of natural gas and petroleum products in a time bound manner and increase the number of piped natural gas users across India.”
The order involves both private as well as government landowners, including housing societies. The development is significant as laying of gas infrastructure across the country face inordinate delays because of gas utilities inability to secure land rights. Often state governments also hinder gas grid projects by denying “right of way” to gas infrastructure companies.
“Published in the Extraordinary Gazette of India, the Order comes into immediate effect and establishes a comprehensive, transparent, and investor-friendly framework for efficient gas distribution, rapid infrastructure expansion, and equitable access to cleaner energy,” the petroleum ministery said in a statement issued on Tuesday late night. The notification is titles as the Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026.
{{/usCountry}}“Published in the Extraordinary Gazette of India, the Order comes into immediate effect and establishes a comprehensive, transparent, and investor-friendly framework for efficient gas distribution, rapid infrastructure expansion, and equitable access to cleaner energy,” the petroleum ministery said in a statement issued on Tuesday late night. The notification is titles as the Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026.
{{/usCountry}}Giving the rationale for the order, the ministry said, “India’s growing energy demand and evolving global energy landscape necessitate a resilient, diversified, and efficient energy system. This Order addresses longstanding challenges in infrastructure development, regulatory uncertainty, and delays in approvals, while positioning natural gas as a key transition fuel.”
At its core, the reform is designed to significantly improve ease of doing business by simplifying procedures, reducing regulatory bottlenecks, and creating a predictable and transparent operating environment for stakeholders, it added.
Key features of the order include, a uniform framework for laying, building, operating, and expanding pipeline infrastructure, standardized processes and timelines to reduce ambiguity and administrative discretion, time-bound approvals with deemed approval provisions to eliminate procedural delays, elimination of arbitrary levies and charges to ensure transparency and cost predictability. These policy measures will help both public and private investors keen on developing gas infrastructure and marketing a cleaner fuel.
The policy will ensure faster rollout of city gas distribution (CGD) networks and trunk pipelines, and reduce excessive dependence of scarce LPG. The government’s move to make clean cooking gas available to all citizens saw a surge in LPG connections in last one decade. The number of domestic LPG connections jumped from approximately 140 million in 2014 to over 330 million now, a jump of 136%. It includes 105.6 million poor household getting free connection and subsidized gas cylinders under Prime Minister Ujjwala Yojana. Current West Asia war and fuel crisis highlighted LPG as a weak point as India imports over 60% of LPG it requires. Due to blockade at the sea route passing through the Strait of Hormuz and Iran bombing Iran struck Qatar’s Ras Laffan industrial city has disrupted India’s gas imports. Qatar, which supplied 47% of India’s total LPG imports, is completely shut since March 18.
The ministry justified the move as it would accelerate rollout of pipeline networks across urban and semi-urban areas, increase adoption of natural gas for cooking, transport as well as industrial purposes will contribute to improved air quality and lower emissions and reliable and affordable energy supply will support industrial and commercial activity.
“The Government remains committed to expanding the role of natural gas in India’s energy mix and fostering a policy environment that promotes investment, innovation, and sustainability. This Order marks an important step towards building a gas-based economy, supported by efficient infrastructure, ease of doing business, and wider access to clean energy,” the ministry said.