Puducherry will commence supply of piped natural gas (PNG) to industries from August 15, with distribution to domestic and commercial consumers set to follow in phases.
East Coast Natural Gas Distribution Pvt. Ltd., which is implementing the project, has completed an 18-kilometre main pipeline from the hook-up point at Sorapet to Mettupalayam. “We aim to energise the pipeline by August 15,” A Magendiran, Assistant Vice President of the company, told TNIE.
Indian Oil Corporation Ltd (IOCL) will supply the gas and is currently awaiting approval from the Petroleum and Explosives Safety Organisation (PESO). “Once we receive clearance, commissioning will begin immediately,” Magendiran added.
In the initial phase, PNG will be supplied to one industrial consumer in Mettupalayam to test system reliability and assess pricing before broader rollout. Meanwhile, urban pipeline work is underway for domestic supply, though some stretches are pending administrative clearances. Lieutenant Governor K Kailashnathan has directed departments, including the PWD, to expedite approvals.
An additional 14 km of pipeline will be laid by the end of this financial year to expand coverage to peripheral areas. Supply will first begin in town areas before being extended outward.
The network aims to serve 8,000 to 10,000 consumers this year, with eventual capacity to cover up to 25,000 consumers across Puducherry.
Although the project was awarded to East Coast Natural Gas in March 2024, groundwork only began in June due to delays linked to the general elections and staggered permissions. The project is now in its final stage of gasification.
To promote PNG adoption, the Puducherry government has reduced Value Added TAX (VAT) on domestic PNG from 14.5% to 5%, and to 7.5% for commercial and industrial consumers, effective from April 1, 2025. The company has also sought GST relief on input gas costs from the Centre.
The price of PNG for domestic use is expected to be around Rs 550–Rs 600, on par with a standard LPG cylinder.
Share This