Will Puducherry Start Piped Natural Gas Supply on August 15?
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Synopsis
Puducherry is poised to initiate its Piped Natural Gas supply catering to industrial consumers on August 15, a landmark move in its phased city gas distribution rollout. With expansions planned for domestic and commercial users, the project shows promise for energy accessibility.
Key Takeaways
- Puducherry begins PNG supply from August 15.
- Initial phase targets industrial consumers.
- Domestic and commercial rollouts to follow.
- Government reduces VAT to encourage adoption.
- Network aims to serve up to 25,000 consumers.
Puducherry, July 28 (NationPress) — The city is set to commence the supply of Piped Natural Gas (PNG) to industrial clients starting from August 15. This initiative represents the initial phase of a comprehensive rollout of the city gas distribution network.
The rollout will subsequently extend to domestic and commercial users in the upcoming months. The project is being executed by East Coast Natural Gas Distribution Pvt. Ltd., which has successfully laid an 18-kilometre pipeline connecting Sorapet to Mettupalayam.
“We are on schedule to activate the pipeline by Independence Day,” stated A. Magendiran, Assistant Vice President of the company.
Indian Oil Corporation Ltd. (IOCL) will supply the natural gas, with final commissioning awaiting approval from the Petroleum and Explosives Safety Organisation (PESO).
“Once we receive the necessary clearance, we will initiate operations,” Magendiran added. In the first phase, PNG will be provided to one industrial consumer in Mettupalayam as a trial to evaluate system stability and pricing.
Progress on laying pipelines in urban areas for domestic connections is currently underway, though some sections have faced delays due to outstanding administrative approvals.
Lieutenant Governor K. Kailashnathan has instructed various departments, including the Public Works Department (PWD), to accelerate the approval process to prevent further setbacks.
The network will be expanded in stages, with an additional 14 kilometres of pipeline anticipated to be installed before the end of the financial year.
The supply will commence in urban centres before extending to suburban areas. The gas distribution network aims to cater to between 8,000 and 10,000 consumers within its first year, with a potential capacity to serve up to 25,000 consumers throughout Puducherry.
Although the project was awarded in March 2024, actual construction only began in June due to the general elections and delays in securing necessary permissions.
Officials have confirmed that the project is now nearing its final readiness stage. To promote adoption, the Puducherry government has reduced the VAT on domestic PNG from 14.5% to 5%, and to 7.5% for commercial and industrial users, effective April 1, 2025.
The company has also reached out to the central government seeking GST relief on input gas costs. PNG for domestic consumers is expected to be priced between Rs 550 and Rs 600, which is comparable to the cost of a standard LPG cylinder.
Point of View
The introduction of Piped Natural Gas in Puducherry is a significant advancement in energy distribution. It reflects a commitment to enhancing energy accessibility and sustainability. As the rollout progresses, it is crucial that all administrative hurdles are swiftly addressed to ensure timely implementation. The potential economic benefits for both industrial and domestic consumers are noteworthy and align with national energy goals.
NationPress
30/07/2025
Frequently Asked Questions
When will Puducherry start supplying PNG?
Puducherry will begin supplying Piped Natural Gas to industrial consumers starting August 15.
Who is implementing the PNG project?
The project is being implemented by East Coast Natural Gas Distribution Pvt. Ltd.
What is the expected price range for domestic PNG?
The price for domestic PNG is expected to be between Rs 550 and Rs 600.
What is the VAT reduction for domestic users?
The Puducherry government has reduced the VAT on domestic PNG from 14.5% to 5%.
How many consumers will be served initially?
The gas distribution network aims to serve between 8,000 and 10,000 consumers within the first year.
