While the government has offered substantial guidance, there is a growing need for a more streamlined approach where both central and state governments work together closely to create a regulatory framework that supports the efficient expansion of City Gas Distribution networks. With continued backing, we are well positioned to develop the necessary infrastructure for sustainable energy, create job opportunities, and address the country’s increasing demand for cleaner fuels, shares Goutom Chakraborty, Chief Executive Officer of GAIL Gas Limited, in an exclusive interview with Nijhum Rudra of Elets News Network (ENN). Edited by: Abhineet Kumar | ENN

Could you explain how GAIL Gas differs from GAIL and share its mission and vision?

GAIL Gas is responsible for overseeing the City Gas Distribution (CGD) business, managing a total of 16 Geographical Areas (GAs). These areas are strategically spread across various regions, and we handle the distribution of natural gas to residential, commercial, and industrial consumers within these locations. Our role involves ensuring the safe, efficient, and reliable supply of natural gas, as well as maintaining and expanding the infrastructure necessary for smooth operations. With a focus on meeting the growing demand for cleaner and more sustainable energy, we continuously work towards enhancing our services and reaching more areas to provide accessible gas solutions.

What is your perspective on India’s market? Do you believe India is on par with, or globally competitive compared to, China and other South Asian countries?

We believe that in the coming years, we will have one of the largest consumer bases of natural gas. However, given the highly competitive nature of the market, the key challenge we face is that our consumers are very price-sensitive.

To address this, we must secure affordable natural gas. As a result, many companies are now pursuing multiple contracts with international partners. This approach will enable us to build a diversified portfolio, giving us the flexibility to secure a competitive pricing advantage. By collaborating with global suppliers through our parent company GAil (India) Limited, we aim to balance price and supply reliability, ensuring we can meet the growing demand for natural gas while keeping costs manageable for consumers.

What sustainable initiatives are you implementing to promote clean and green energy and ensure environmental sustainability?

In the context of City Gas Distribution, we consider natural gas as a transition fuel. While it may not be 100% clean, it serves as an intermediary between traditional, more polluting fuels and fully sustainable, green energy sources. This phase of transition is essential for the entire world, and India is rapidly progressing through this transition. We are committed to taking proactive measures to ensure a smooth and effective shift towards more sustainable energy sources. Our approach is designed to integrate energy solutions that reduce environmental impact. For instance, we focus on increasing the use of electricity over other fuels, not only for operational needs but also to support our internal consumption goals. This strategy is aligned with our overarching aim of achieving net-zero emissions by 2035.

What initiatives are you undertaking to achieve this target?

To meet this target, we are working closely with our parent company GAIL and focusing on several initiatives. We have already begun incorporating biogas as a fuel in some of our plants, demonstrating our commitment to cleaner alternatives. Additionally, we are actively exploring the potential of hydrogen, particularly green hydrogen, and plan to blend it into our City Gas Distribution network. We have a comprehensive roadmap in place to guide us through this transition, ensuring we meet our sustainability goals by 2035. Through these efforts, we are making significant strides towards a greener, more sustainable energy future.

Are you also working on green hydrogen? Do you have any plans to boost this initiative?

Our parent company is leading the way in this area, and has already established India’s first green hydrogen manufacturing plant using electrolyser at MW level using PEM techhnology in Vijaipur, Madhya Pradesh. This plant is a groundbreaking initiative, marking a significant step towards sustainable energy in the country. In addition to this, we are actively collaborating with other entities that produce biogas. GAIL itself also manufactures biogas at one of its plants in Ranchi. We are now sourcing biogas from various external producers and integrating it into our City Gas Distribution network. This enables us to provide cleaner, more sustainable energy solutions to our consumers.

In terms of what GAIL Gas offers to the people, our primary goal is to ensure the safe, reliable, and efficient supply of natural gas, which serves as a cleaner alternative to traditional fuels. We focus on offering natural gas to residential, commercial, and industrial consumers, and we are steadily expanding our network. With initiatives like biogas integration and green hydrogen blending, we are working toward providing a more sustainable energy future, making a significant contribution to both local and national sustainability goals.

Read More:- Delta Electronics Strengthens India’s Sustainability Push with Measurable ESG Outcomes

Do you believe any specific policies are needed in your sector, and what message would you like to convey to the government regarding areas they should focus on?

The government has been very supportive, and I believe they are already doing a lot to facilitate our growth. We have made significant progress with their assistance, and now it’s time for us to operate more independently. Fortunately, they are allowing us to take more ownership of our operations, and with continued support, we are confident that we can achieve our long-term goals.

There are certainly ongoing challenges, especially around tax reforms and certain regulatory issues, but the government is actively addressing these concerns. Additionally, there are existing policies that help us navigate the complexities of City Gas Distribution. Since the infrastructure for city gas distribution must be laid within states, state governments need to work in alignment with central government guidelines. This coordination is crucial for smooth operations.

Any challenges related to these alignments are relatively minor, and we expect them to be resolved in the coming days. As the market for City Gas Distribution continues to evolve, we are optimistic that everything will fall into place and the sector will continue to grow and expand smoothly.

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