The Odisha Government has introduced the City Gas Distribution (CGD) Policy, 2026 to strengthen the expansion of piped natural gas (PNG) and compressed natural gas (CNG) infrastructure across the state through a streamlined and coordinated framework.
Formulated by the Housing and Urban Development department, the policy focuses on promoting natural gas as a cleaner and more sustainable fuel alternative for domestic, commercial, industrial and transportation applications. The initiative is expected to support Odisha’s broader clean energy transition while improving urban infrastructure and fuel accessibility.
Under the new framework, the state has proposed a single-window clearance mechanism to speed up approvals related to gas infrastructure projects. The policy also introduces uniform charges for permissions, GIS-based mapping of underground utilities, and priority land allocation for CNG stations and City Gate Stations. In addition, urban planning and building regulations will now incorporate mandatory provisions for PNG pipeline infrastructure.
Five authorised CGD entities have been assigned the responsibility of expanding natural gas services across all 30 districts of Odisha. The programme aims to provide nearly nine lakh domestic PNG connections and establish 271 CNG stations statewide. The rollout is projected to attract investments worth around Rs 5,100 crore.
To ensure smoother implementation and inter-departmental coordination, the government has constituted monitoring committees at both state and district levels. The policy also offers relief to project developers by waiving permission and supervision charges for pipeline laying activities until March 31, 2027.
Apart from infrastructure expansion, the framework places strong emphasis on operational safety, emergency response preparedness and the development of compressed biogas initiatives. The policy is also designed to ensure uninterrupted PNG and CNG supply while encouraging environmentally responsible urbanisation and industrial growth throughout the state.