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Centre to soon announce new tariff policy for higher share of natural gas

Tuesday, 16 Jun 2020
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The Central government will soon announce a new tariff policy that will help bring down the cost of transporting natural gas. This is being done to raise the share of natural gas in the energy basket.

Also oil regulator, the Petroleum and Natural Gas Regulatory Board (PNGRB), is working on a new regime for authorisation of gas pipelines that will make it more investor friendly.

The new pipeline tariff policy will replace the existing practice of seven different pipeline operators charging separate rates and customers away from gas source paying more than those nearer to source.

PNGRB is also working on rationalisation of tariffs to make natural gas affordable in every part of the country. It will facilitate development of gas market in eastern and North-Eastern parts of the country.

GAIL (India) has come up with a proposal to have pipeline and gas marketing business in separate divisions. There will be an infrastructure company for pipelines.

Work is underway on completing the gas grid in a time-bound manner. PNGRB is in a process of bidding out the pipelines for missing sections to complete the national gas grid.

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