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The policy can be adopted by states to facilitate speedy implementation of CGD networks and value-added services. Reduced road taxes and value-added tax (VAT) may also be in the offing for gas-driven vehicles.
Date: January 23, 2020
India –Petroleum and Natural Gas Regulatory Board, based in New Delhi, has invited the stake holders of industry to provide inputs/views for formulation of Draft CGD Policy on 21st November 2019 and it ended on 30th Nov 2019. In continuation to that Minister of Petroleum & Natural Gas and Minister of Steel, Dharmendra Pradhan, unveiled the National Dossiers and Draft City Gas Distribution (CGD) Policy for states.
The policy can be adopted by states to facilitate speedy implementation of CGD networks and value-added services. Reduced road taxes and value-added tax (VAT) may also be in the offing for gas-driven vehicles.
The draft policy suggests setting up of a committee, under the Chairmanship of the Chief Secretary, which will help formulate policies and streamline the processes for various permissions for development of CGD infrastructure.
It will create setting up of a suitable single-window clearance mechanism for the same in the state for promotion development of CGD infrastructure and ease of doing business.
The committee will also create a suitable mechanism for permissions from state divisions of the Petroleum and Explosives Safety Organisation, the National Highways Authority of India (NHAI), the Railways, etc.
The government will also provide USD 1.5bn crore as viability gap funding for laying pipeline in eastern and north-eastern India. The gas pipeline network will be ready from Kutch to Kohima and Kashmir to Kochi.
With a move to promote clean and green fuel, the draft policy is looking to make CNG/LNG as the preferred fuel in public transportation. The state transport corporations will accord priority to CNG/LNG buses, while procuring new buses and retrofitting in present alternate fuel fleet, in order to promote the usage of CNG/LNG in public transport.
In a move to provide user-friendly clean and green fuel CNG and PNG to the general public at affordable and reasonable rates, VAT rates may be reviewed and rationalised with a ceiling of five percent.
Also, to promote safe usage of CNG/LNG in the transport sector, state policy thrust may be given by rationalising road tax for factory-fitted CNG/LNG vehicles and making them at a par with electric vehicles.
