Introduction of Government’s CNG policy and India’s CNG infrastructures and NGV Diffusion 25 th November, 2014 New Delhi

Supreme Court Directives and Progress Made on Introduction of CNG in Polluted Cities Supreme Court directive dated July 28, 1998 Replacement of all pre 1990 autos & taxis with new vehicles on clean fuels by March 31, Augmentation of public transport to buses by April 1, Entire city bus fleet to be steadily converted to single fuel mode on CNG by March 31, Indraprastha gas limited to expedite and expand from 9 to 80 CNG supply outlets by March 31, 2000.

Supreme Court directive dated April 5, 2002 Union of India to give priority to transport sector including private vehicles all over India with regard to allocation of CNG. This means that first natural gas will be allocated and made available for CNG to the transport sector in Delhi and in the other air polluted cities of India. On August 19, 2003, Supreme Court again directed Government of India and concerned State Governments to draw up an action plan for introduction of alternative transport fuels in the cities of Ahmedabad, Kanpur, Sholapur, Lucknow, Bangalore, Chennai, Hyderabad, Mumbai and Kolkata.

Gas Utilization Policy The large gap between demand and available supplies prompted the government to develop a Gas Utilization Policy and to go back to administrative control over prices and over volumes to be allocated to end-consumers. Therefore, in 2008, the government introduced new guidelines called the Gas Utilization Policy, which effectively took away gas producers' rights to sell the gas they discover on the open market. These guidelines were applicable for five years and be reviewed afterwards.

Gas Utilization Policy (2) Currently, the rules of the General Policy for the gas market imply that gas will be allocated according to sectoral priorities set up by the government. This does not imply that the gas is “reserved”: if one customer is not in a position to take the gas, the next one on the list becomes eligible. As per reports, the Government will give city gas projects selling CNG to automobiles and piped cooking gas to households’ top-most priority for receipt of domestically produced gas.

Sectoral Snapshot CGD infrastructure is available in 46 cities in India Delhi, Mumbai, Ahmedabad, Surat and Pune are some major cities covered by CGD infrastructure. India had 925 CNG stations at the end of March 2014 Gujarat has the maximum number of stations: 326, followed by Delhi NCR with 295 stations Total numbers of Piped Natural Gas Consumers are 24.6 million while CNG serves a vehicle population of 1.97 million vehicles. Average sale of CNG in India is 6.5 MMSCMD.

CNG Infrastructure as on March 2014 Plan to add 52 more cities by 2022

Natural gas pipelines in India as on December 2013

Vehicle Population Running on CNG The vehicles have grown at a CAGR of 30.8 % during 2002 to 2013.

Key Highlights for CNG Infrastructure during Q1 (Apr 14-Jun 14) The total number of CNG stations in the country added in Q were 8 as compared to 18 in Q CNG consumption during Q1 FY for around 1.7 million IGL had the largest market share with 45% of total gas sales volume followed by Gujarat Gas Company with 10% market share. Growth in CNG infrastructure

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