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India Accelerates Clean Energy Transition with Natural Gas Initiatives

Updated: Nov 29, 2024 05:33:57pm
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India Accelerates Clean Energy Transition with Natural Gas Initiatives

New Delhi, Nov 29 (KNN) In a significant push towards a greener energy future, India is ramping up efforts to make natural gas a cornerstone of its clean energy transition.

The Petroleum and Natural Gas Regulatory Board (PNGRB), in collaboration with the Ministry of Environment, Forest and Climate Change (MoEF&CC) and state governments, is unveiling measures to promote the use of natural gas in industries and commercial establishments.

Natural gas, which reduces emissions by up to 27 per cent compared to petroleum products, offers a cleaner, cheaper, and more efficient energy alternative. To ease its adoption, PNGRB is focusing on reducing regulatory hurdles. 

“Industries transitioning to natural gas will benefit from measures like relaxed inspection schedules, reduced compliance frequency, and lower regulatory burdens,” said A. 

Ramana Kumar, a PNGRB Member, in an interview with ET Energyworld. These steps aim to ensure a smoother shift to cleaner fuels with minimal disruption.

PNGRB is extending inspection intervals and easing regulatory requirements, addressing operational challenges that industries often face during energy transitions. 

To further incentivise adoption, the board is working with state governments to standardise and lower Value Added Tax (VAT) on natural gas. 

Progressive states like Maharashtra and Goa have reduced VAT on Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) to as low as 3 per cent-4 per cent, with Gujarat and Karnataka capping rates at 5 per cent.

A pivotal step under discussion is bringing natural gas under the Goods and Services Tax (GST) regime. “Including natural gas in GST will simplify taxation and significantly lower costs, making it more attractive for industries,” Kumar explained. 

Additionally, the MoEF&CC and state governments are exploring subsidised loans for clean fuel infrastructure to reduce capital expenditure.

Aligned with the National Clean Air Programme (NCAP), these measures also target urban air quality improvements. Plans include phasing out diesel buses in 131 cities and replacing them with cleaner alternatives like CNG vehicles. By 2030, India aims to increase the share of natural gas in its energy mix to 15 per cent.

“Natural gas is a practical and cleaner alternative,” Kumar emphasized. These coordinated initiatives mark a significant step toward achieving India’s ambitious clean energy goals.

(KNN Bureau)

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