Government notifies landmark gas pipeline order to boost infrastructure, ease of doing business

The central government has notified the Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026 under the Essential Commodities Act, 1955, establishing a streamlined, transparent and time-bound framework for laying and expanding pipeline infrastructure across the country.

Issued by the Ministry of Petroleum and Natural Gas and published in the Extraordinary Gazette of India, the order comes into immediate effect. It seeks to address long-standing challenges such as delays in approvals, regulatory uncertainty and restricted access to land, while enabling faster development of natural gas infrastructure, including in residential areas.

The policy introduces a uniform regulatory framework covering the laying, building, operation and expansion of pipelines. It standardises procedures, timelines and charges, reducing ambiguity and administrative discretion. A key highlight is the introduction of time-bound approvals with deemed clearance provisions, aimed at eliminating procedural delays and improving efficiency.

In a major push to ease of doing business, the order provides a harmonised framework across jurisdictions, removing fragmentation in permissions. It eliminates arbitrary levies and charges, ensures transparency and cost predictability, and defines compensation and restoration mechanisms such as “dig and restore” and “dig and pay” to prevent disputes with local authorities. Compliance requirements have also been simplified with clearer documentation norms.

The reform is expected to significantly accelerate pipeline infrastructure development by facilitating seamless access for authorised entities. It will support faster rollout of City Gas Distribution networks, expansion of trunk pipelines and improved last-mile connectivity for piped natural gas (PNG).

Operational clarity has also been introduced, particularly in handling disruptions and access constraints. Safeguards such as bank guarantees have been included to ensure accountability without imposing excessive financial burden on operators.

The order places strong emphasis on consumer-centric service delivery. It mandates time-bound provision of PNG connections, improves service standards and supports a gradual transition from LPG to PNG in areas where pipeline infrastructure exists, while allowing flexibility in regions where connectivity is not technically feasible.

To safeguard public interest, the policy prevents unreasonable denial of access for pipeline development by local bodies or private entities. It also establishes a transparent dispute resolution mechanism through designated authorities, balancing consumer convenience with national priorities such as energy security and clean energy transition.

The government said the reform will enhance energy security by strengthening and diversifying the gas distribution network, reduce dependence on single fuels, and boost investor confidence through regulatory certainty. It is also expected to support economic growth by ensuring reliable and affordable energy supply, while contributing to improved air quality and lower emissions.

Reiterating its commitment to a cleaner, gas-based economy, the government said the order marks a significant step towards expanding the role of natural gas in India’s energy mix through efficient infrastructure, wider access and a predictable policy environment.