The city gas distribution (CGD) sector plays a vital role in providing a clean and affordable source of energy to households, commercial establishments, and industries across India. The sector is responsible for the distribution of natural gas, which is considered a cleaner and more efficient fuel than traditional fossil fuels such as coal and oil. The use of natural gas is also in line with the Indian government’s vision of promoting clean energy and reducing the country’s dependence on foreign oil.
In recent years, the CGD sector has been facing several challenges, including high prices of natural gas, limited availability of infrastructure, and regulatory bottlenecks. To address these issues, the government set up the Kirit Parikh committee to review the pricing formula for natural gas produced in the country.
The committee’s recommendations have been widely welcomed by the industry, as they are expected to provide a significant boost to the CGD sector. The recommendations include a revision of the pricing formula to make natural gas more affordable, as well as the expansion of infrastructure to ensure wider access to natural gas across the country.
The government’s decision to implement the committee’s recommendations is a positive development for the CGD sector, which is poised for significant growth in the coming years. The sector is expected to play a crucial role in the country’s transition to a cleaner and more sustainable energy system, and the government’s support is crucial in ensuring its success.
Overall, the CGD sector has a critical role to play in India’s energy mix, and with the government’s continued support, it is poised to emerge as a key contributor to the country’s economic growth and development.