To bring natural gas under of goods and services tax (GST) system is in talk for a long time now. It will make transport of the fuel more efficient across the country. Finance minister Nirmala Sitharaman on Saturday announced plans for expansion of the National Gas Grid to 27,000 km from the present 16,200 km along with more pricing reforms in the future.
India’s downstream oil and gas regulator, the Petroleum and Natural Gas Regulatory Board (PNGRB) appointed Crisil Infrastructure Advisory Services in May, 2018 as a consultant to prepare regulations for the planned gas trading hub. As of now, price of domestically produced natural gas is fixed by a formula that averaged the rates in gas surplus nations such as Russia and the US.
The idea is to create an ecosystem where competing buyers would be able to buy gas from competing sellers and transport as per the pipeline capacity.India, being the biggest emitter of greenhouse gases after the US and China, aims to achieve emission reduction targets pledged at the 21st session of the Conference of the Parties (CoP) in Paris. The Centre provided ₹5,559 crores for the construction of the North East Gas Grid project across Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura.
On 23 January, 2020 the Ministry of Petroleum and Natural Gas had released a draft city gas distribution policy that is accepted to be adopted by states to facilitate speedy implementation of city gas distribution (CGD) networks and value-added services. A uniform rate of 5% might be levied so as to provide natural gas at reasonable prices.