Odisha Unveils City Gas Distribution Policy 2023 to Boost Clean Energy Infrastructure

Gazette Notification Issued for PNG and CNG Expansion Across Urban Odisha

The Odisha Government has introduced the Odisha City Gas Distribution (CGD) Policy, 2023 to expand piped natural gas (PNG) connections to households and compressed natural gas (CNG) supply across urban areas of the state. The Housing and Urban Development Department has officially published the policy through a gazette notification.

The initiative aims to accelerate the adoption of clean energy in urban Odisha and support the vision of a developed and environmentally sustainable state.

Major Relief for CGD Companies Till March 2027

Under the new policy, the state government has announced a one-time moratorium on all permission and supervision fees for CGD infrastructure projects till March 31, 2027. The move is expected to encourage rapid expansion of city gas networks in different urban regions.

Authorities have also streamlined the approval process. Permissions will be granted within seven working days of receiving applications. If no decision is taken within 30 days, the proposal will automatically receive “deemed approval,” ensuring faster implementation of projects.

₹5,100 Crore Investment Potential in Odisha

The policy is expected to attract investments worth nearly ₹5,100 crore for the development of CGD infrastructure in the state. Five major companies — GAIL, GAIL Gas, BPCL, Adani Total Gas, and Megha Gas — are likely to play a key role in the expansion.

Officials believe the initiative will generate large-scale employment opportunities while significantly improving urban infrastructure in Odisha.

Long-Term Land Lease for Gas Infrastructure

To support the establishment of gas facilities, the government has proposed priority allotment of government land on a 30-year long-term lease basis for setting up City Gate Stations and CNG stations.

This provision is expected to speed up infrastructure creation and ensure uninterrupted expansion of the gas distribution network.

Mandatory CNG Usage in Major Cities

The policy mandates that educational institutions and private buses operating in cities with a population exceeding five lakh must shift to CNG usage within the next two years.

The government believes this transition will play a crucial role in reducing urban pollution and strengthening environmental protection measures in rapidly growing cities.

PNG and CNG Declared Essential Services

PNG and CNG services have been declared “essential services” under the policy. This means supply and transportation of gas will continue even during emergency situations, ensuring uninterrupted access to clean fuel for citizens.

Target of 9 Lakh PNG Connections and 271 CNG Stations

The Odisha Government has set an ambitious target of providing more than 9 lakh domestic PNG connections and establishing 271 CNG stations across the state.

The initiative is expected to make clean and affordable fuel accessible to urban residents while promoting a healthier and more sustainable urban lifestyle.

State and District-Level Committees Formed

To ensure smooth implementation of the policy, the government has constituted a state-level apex committee under the chairmanship of Chief Secretary Anu Garg. District-level monitoring committees headed by District Collectors have also been formed.

These committees will function as single-window approval authorities, simplifying permissions related to gas pipeline laying and infrastructure development. The system is expected to make the approval process more transparent, efficient, and time-bound.