The Rajasthan government announced the Rajasthan City Gas Distribution (CGD) Policy 2025 to significantly expand piped natural gas (PNG) and compressed natural gas (CNG) networks to smaller cities and towns across the state. The policy is aimed at building a gas-based economy in Rajasthan while simultaneously reducing dependence on polluting fuels and promoting clean transport.
City Gas Distribution (CGD) refers to the network that delivers natural gas to households (as piped PNG), to commercial establishments, and to CNG stations for vehicles. While major cities like Jaipur already have some CGD infrastructure, Tier-2 and Tier-3 cities — including towns such as Alwar, Bharatpur, Kota, Ajmer, Bikaner, and Sikar — have remained underserved due to infrastructure gaps and limited investment incentives.
The CGD Policy 2025 addresses these gaps by offering a package of incentives to authorised CGD entities and investors: land allocation for CNG stations at preferential rates, fast-track environmental and municipal clearances, state support for right-of-way for pipeline laying, and dedicated CGD zones in industrial and commercial areas.
The policy provides for CNG vehicle-kit approvals, road-tax or registration-charge exemptions for registered CNG vehicles, and encourages educational institutions and private transport buses to transition to CNG. It also expands PNG access for domestic, commercial and industrial consumers.
The policy also supports integration with Rajasthan's renewable energy ambitions — bio-CNG (Compressed Biogas) derived from municipal solid waste and agricultural residue will be allowed into the CGD network, aligning with circular economy principles. The state will also facilitate connections between CGD networks and major industrial clusters in Bhilwara, Jodhpur, and Rajsamand.
For RAS aspirants, the CGD Policy 2025 is relevant under energy policy, environment, urban infrastructure, and Rajasthan's economic development themes. It exemplifies how state governments can drive energy transition through targeted policy and private investment facilitation.