City Gas Distribution Market in India: Analysing Current Status and Infrastructure Requirement for Strengthening CGD Network in India

Overview of CGD in India : Development Timeline In 2007, the Government of India (GoI) set up a regulator, the Petroleum and Natural Gas Regulatory Board (PNGRB), which has, among other mandates in the hydrocarbon sector, the mandate of regulating the CGD business. PNGRB has outlined its vision of expanding the CGD network to over 300 cities in India, as part of which bidding has been initiated through four rounds for 28 cities. Although some of these cities are yet to be awarded to the successful bidders and the fourth round has been cancelled recently, the bidding has elicited enthusiastic participation even as several challenges exist. This paper focuses on the challenges for the new entrants in the CGD sector—one that appears lucrative at first glance. In 2016, new bidding rounds were rolled out by the PNGRB. Bids were invited for the development of CGD networks for five GAs under the seventh round and another eight GAs under the eighth round. While the seventh round was deferred due to issues of uncertain/distant natural gas pipeline connectivity, the eighth round is currently in its bidding phase.   CGD Market in India :Current  Status & Realistic Assessment The city gas distribution (CGD)

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*The views expressed in this article are solely those of enincon perspectives and do not necessarily represent those of Enincon LLP.