REGULATORY · MARKET STRUCTURE · INDIA
India offers 10% additional commercial LPG allocation to states
Change
The central government offered States and Union Territories an additional 10% allocation of commercial LPG conditional on state actions to support a transition from LPG to piped natural gas (PNG).
Why it matters
The government offered a total additional 10% commercial LPG allocation to States and UTs conditional on their assistance with the long-term transition from LPG to PNG. The 10% is allocated as 1% for forming State and District committees for CGD approvals and grievance resolution, 2% for issuing orders granting deemed CGD permissions, 3% for introducing a dig-and-restore scheme for CGD entities, and 4% for reducing annual rental/lease charges. Officials described the LPG situation as "still worrisome", noting improved online booking alongside long lines at distributors. Each allocation increment is contingent on the corresponding state-level action.
Implications
- · State and UT authorities must form State and District CGD committees to obtain the 1% allocation.
- · Issuing administrative orders granting deemed CGD permissions is required to access the 2% allocation.
- · Implementing a dig-and-restore scheme for CGD entities is required to unlock the 3% allocation.
- · Reducing annual rental/lease charges is required to secure the 4% allocation.
Who is affected
- · State and Union Territory energy/administrative authorities
- · City Gas Distribution (CGD) operators and applicants
- · LPG distributors and retail outlets
Source
Topics
World & Politics Policy & Regulation Business & Markets Supply Chain & Logistics Energy & Power Energy Transition