India's ambitious push to expand piped natural gas (PNG) connections is encountering significant obstacles, with city gas distribution (CGD) companies struggling to meet the government's targets. Currently, these companies are adding only 8,000 to 10,000 new connections per day, far below the petroleum and natural gas ministry's goal of 100,000 daily connections.
Manpower Shortage Slows Rollout
Industry executives cite an acute shortage of trained manpower, especially certified gas plumbers, as a primary factor behind the slow progress. Weak consumer uptake in several regions further compounds the issue. 'The urgency of the government is understandable, but the ecosystem is not ready,' a senior executive at a CGD company told ET. The required workforce does not exist at the scale needed for such an aggressive expansion, particularly in major centers like the National Capital Region (NCR), Mumbai, and Ahmedabad, where many plumbers have returned to their hometowns amid election-related disruptions.
'There are no certified gas plumbers available. The target is not achievable in the current scenario,' another executive added. To address the gap, CGD companies have begun recruiting water plumbers and providing them with three-to-four-week crash courses. However, executives note that these workers cannot fully meet the technical expertise and safety standards required for PNG installations.
Connections Lag Behind Targets
The sector has so far delivered around 16 million PNG connections, well below the pro-rated target of 40 million. At the current pace, the broader goal of over 125 million connections by 2030 appears increasingly difficult to achieve.
Low Consumer Activation and Rental Hurdles
Beyond labor shortages, CGD companies face poor activation rates among consumers. Industry officials report that more than 6 million households with PNG pipelines already laid are yet to start using the service. Rental housing is emerging as another hurdle, as property owners are reluctant to complete the process due to upfront deposits and procedural formalities. 'Owners don't want to take the pain for tenants,' an official told ET.
Executives also highlight that low customer concentration in several localities is affecting the rollout. Scattered demand makes it commercially unviable to send installation teams into certain areas. 'If orders are scattered, sending the crew doesn't make business sense. That delays the rollout further,' an industry executive explained.
