Page 47 - Policy Economic Report - March 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Key Features of the Reform

1. Transparent and Predictable Regulatory Framework
? Establishes a clear, uniform framework for laying, building, operating, and expanding
pipeline infrastructure.
? Introduces standardized processes and timelines, reducing ambiguity and administrative
discretion.

2. Major Boost to Ease of Doing Business
? Time-bound approvals with deemed approval provisions to eliminate procedural delays.
? Single, harmonized framework across jurisdictions to reduce fragmentation in permissions.
? Elimination of arbitrary levies and charges, ensuring transparency and cost predictability.
? Defined compensation and restoration mechanisms (“dig and restore” / “dig and pay”) to
avoid disputes with local authorities.
? Reduced compliance burden through simplified procedures and clear documentation
requirements.

3. Accelerated Pipeline Infrastructure Development
? Facilitates seamless access for authorized entities to lay and expand pipelines.
? Ensures faster rollout of City Gas Distribution (CGD) networks and trunk pipelines.
? Supports last-mile connectivity and rapid scaling of piped natural gas (PNG).

4. Operational Flexibility and Certainty
? Provides clarity in handling operational issues, including disruptions and access constraints.
? Introduces safeguards such as bank guarantees to ensure accountability without imposing
excessive financial burden.

5. Consumer-Centric Service Delivery
? Enables time-bound provision of PNG connections, improving service delivery standards.
? Facilitates a gradual transition from LPG to PNG in areas where pipeline infrastructure exists.
? Provides flexibility where connectivity is not technically feasible.

6. Safeguarding Public Interest
? Prevents unreasonable denial of access for pipeline development by local bodies or private
entities.
? Establishes a transparent dispute resolution mechanism through designated authorities.
? Balances consumer convenience with national priorities of energy security and clean energy
transition.

Expected Impact

a. Enhanced Energy Security: Strengthens and diversifies the gas distribution network, reducing
dependence on single fuels.

b. Improved Ease of Doing Business: Faster approvals and regulatory certainty will boost investor
confidence.

c. Infrastructure Expansion: Accelerated rollout of pipeline networks across urban and semi-urban
areas.

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