By: ICN Bureau
Last updated : March 12, 2026 5:31 pm
Under this project, BPCL plans to provide Piped Natural Gas (PNG) connections to approximately 8,84,777 households, along with connections to over 200 commercial establishments and industrial customers
Prime Minister Narendra Modi laid the foundation stone for Rs. 3,685 crore Bharat Petroleum Corporation Limited’s (BPCL) City Gas Distribution (CGD) Project in Nilgiris and Erode districts of Tamil Nadu.
The project marks an important milestone in expanding India’s clean energy infrastructure and strengthening the adoption of natural gas as a cleaner and more sustainable fuel.
The CGD project aims to establish a comprehensive gas distribution network across the geographical areas of The Nilgiris and Erode districts. Bharat Petroleum Corporation Limited received authorization from the Petroleum and Natural Gas Regulatory Board (PNGRB) on 15th March, 2022 to develop the CGD network in these districts.
Under this project, BPCL plans to provide Piped Natural Gas (PNG) connections to approximately 8,84,777 households, along with connections to over 200 commercial establishments and industrial customers. The project will also establish more than 200 Compressed Natural Gas (CNG) stations to promote the use of cleaner vehicular fuel alternatives across the region. The project is scheduled for completion by 31st March 2030.
The development of the CGD network will involve laying steel and MDPE pipelines to create a robust and reliable gas distribution infrastructure, with a Minimum Work Program target of 1,316 inch-km of pipeline network. The natural gas supply for the project will be sourced through a hook-up point at Perundurai in Erode district from the Gas Authority of India Limited (GAIL) network.
Pipeline laying activities have already commenced from the City Gate Station at Perundurai, connecting to Erode city. Domestic customer registrations have also begun in Perundurai and Erode, marking the initial phase of consumer onboarding and network expansion.
The project is expected to play a significant role in supporting India’s net-zero emission goals by promoting natural gas as a cleaner alternative to conventional fuels. The transition to PNG and CNG is expected to reduce greenhouse gas emissions by approximately 24 percent, contributing meaningfully to environmental sustainability and improved air quality in the region.
Adoption of PNG is projected to significantly reduce LPG consumption across multiple sectors. In the household sector, PNG adoption could reduce LPG usage by 40–50 percent in transition areas. The commercial sector, including restaurants and hotels, may witness a 50–60 percent reduction in LPG consumption, while industries shifting to natural gas could reduce LPG dependency by 60–80 percent through a reliable pipeline-based gas supply.
The CGD project will also deliver several socio-economic benefits for the region. PNG offers continuous, safe and convenient fuel supply, eliminating the need for cylinder handling while ensuring enhanced safety and cost efficiency. In addition, CNG and PNG help reduce emissions of carbon dioxide (CO₂), nitrogen oxides (NOx) and particulate matter (PM), contributing to improved environmental quality.
The project is expected to generate over 22 lakh man-days of direct and indirect employment, providing a significant boost to local economic activity. The availability of natural gas infrastructure is also expected to attract new industrial investments, support the growth of local enterprises, and enhance the overall competitiveness of industries in the region.
Once fully operational, the CGD network will provide access to clean and reliable energy for over 29.8 lakh people across The Nilgiris and Erode districts. By improving energy accessibility and reducing indoor air pollution, the project will contribute to improved quality of life and sustainable development for communities in the region.
The City Gas Distribution project in The Nilgiris and Erode districts represents another important step by BPCL in expanding India’s clean energy ecosystem and supporting the nation’s transition towards a low-carbon and sustainable energy future.