CNG pipeline fee set at one-rupee/meter in line with central policy: Minister
To encourage the use of eco-friendly fuel, the state government permitted CNG (Compressed Natural Gas) providers in urban areas to lay pipelines at a nominal fee of Re. 1 per meter.
Bengaluru: To encourage the use of eco-friendly fuel, the state government permitted CNG (Compressed Natural Gas) providers in urban areas to lay pipelines at a nominal fee of Re. 1 per meter. This decision was not taken from a commercial perspective but in alignment with the Central government’s policy, clarified Large and Medium Industries Minister M.B. Patil in the Karnataka Legislative Council on Tuesday.
Responding to a star-marked question by BJP MLC D.S. Arun, the minister stated that the decision was aimed at maintaining uniformity across the state, as per the Central government’s advice. Patil further opined that the active and systematic involvement of local administrative bodies could help achieve the project’s targeted goal of supplying CNG through pipelines to 66.25 lakh households by 2030.
Before finalising the fee, the state government studied the charges levied by other states such as Uttar Pradesh, Kerala, Andhra Pradesh, and Telangana. It was found that while Uttar Pradesh charged ₹1,000 per kilometre, Telangana did not impose any fee at all. Furthermore, in 2021, when Basavaraja Bommai was the chief Minister the then Union Petroleum Minister had urged Karnataka government to facilitate the implementation of the CNG project to promote eco-friendly and sustainable fuel usage, Minister explained.
However, D.S. Arun expressed dissatisfaction with the minister’s response, claiming that charging only Re. 1 per meter resulted in an estimated revenue loss of ₹5,100 crore for the state. In response, Patil emphasised that the decision was not viewed from a commercial standpoint and was approved by the finance department. Additionally, service providers, including the Gas Authority of India Ltd. (GAIL), a Central Public Sector Enterprise, had given an undertaking to pass on the benefits to end-users, he noted.
The project by GAIL, which began in 2015, aimed to supply CNG through pipelines to 66.25 lakh households and set up 1,022 CNG stations.
By 2023, CNG supply had been extended to 4.07 lakh households, and 320 CNG stations had been established. Since the introduction of the Uniform Policy in 2023, an additional 1.02 lakh households have been connected, and 154 new CNG stations have been set up.
