Bhubaneswar: The government has notified the Odisha City Gas Distribution (CGD) Policy, 2026 with the objective of accelerating expansion of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) networks across the state.  

The policy has been issued by the Housing & Urban Development Department and comes into force from the date of its publication in the Official Gazette.

The policy aims to promote natural gas as a cleaner and environment-friendly fuel for domestic, commercial, industrial and transport sectors, in alignment with the vision of ‘Viksit Odisha’ and India’s clean energy transition goals. It seeks to facilitate faster implementation of PNG connections, CNG stations and related infrastructure through a streamlined, time-bound approval mechanism.

Govt plans 9 lakh PNG connections, 271 CNG stations in Odisha

As per the policy, Odisha has already authorized five CGD entities to cover all 30 districts of the state. Around 9 lakh PNG domestic connections and 271 CNG stations are planned under the committed work programme, with an estimated investment potential of nearly Rs 5,100 crore.

The Housing & Urban Development Department has been designated as the nodal department for implementation of the policy. A state-level apex committee under the chairpersonship of the Chief Secretary and district-level monitoring committees headed by Collectors will facilitate faster clearances, coordination among departments and monitoring of CGD projects.

The policy also provides for single-window clearance mechanisms, standardized permission charges, GIS-based underground utility mapping, priority allotment of land for CNG stations and inclusion of PNG pipeline provisions in building plans and urban master plans.

To encourage rapid expansion of CGD infrastructure, the state government has waived permission and supervision charges for pipeline laying till March 31, 2027. The policy further emphasizes safety standards, emergency response mechanisms, uninterrupted supply of PNG/CNG as essential services, and promotion of Compressed Biogas (CBG) initiatives in association with local bodies.

The policy is expected to strengthen Odisha’s clean energy ecosystem, improve urban infrastructure, reduce pollution and create significant employment and investment opportunities across the state.

Odisha Cabinet had approved the CGD Policy last month 

It is worth mentioning here that the state Cabinet, headed by Chief Minister Mohan Charan Majhi, had approved the Odisha City Gas Distribution (CGD) Policy last month.

The policy addresses existing challenges including multi-agency approvals and lack of a unified framework, ensuring faster project implementation through streamlined processes, said the state government.

The policy aims at establishing a clear and efficient framework for PNG and CNG infrastructure, simplifying approvals and promoting faster adoption of clean fuel, it added. 

According to the government, the policy will ensure timely implementation of CGD projects, maintain safe and reliable gas supply through effective asset management and enable coordination for CBG plant development under Swachh Bharat Mission.