Former PNGRB chief urges fresh CNG drive to cut pollution, backs natural gas inclusion under GST
Sarraf, who led the expert committee on natural gas reforms, said increasing CNG use is essential if India wants to raise natural gas’s share in its energy mix from 6% to 15%, a goal the government has set for the next few years.
“Natural gas forms only 6% of our energy basket, while globally it’s around 24–25%. The government has the mandate to take it to 15%,” he said.
He explained that natural gas is not just more environment-friendly but also economical compared to liquid fuels like petrol and diesel. “It’s far more environment friendly if we compare it with coal. In most cases, it is also more economical,” Sarraf noted.
Sarraf emphasised that CNG is not competing with electric vehicles (EVs) but complementing the clean-energy transition. While India should continue supporting EV adoption, he said CNG remains the most practical near-term option.
A key recommendation of Sarraf’s committee is to restore APM gas allocation to the CNG segment, which he described as a “growth engine” for boosting India’s natural gas consumption.
The report also suggests a revenue-neutral inclusion of natural gas under GST, addressing long-pending industry concerns about input tax credit.
“We suggested including natural gas within GST but with a rate that makes it revenue neutral. Some states may gain and others may lose, so the government should design a mechanism to balance that,” Saraf said.
On the industry’s demand for removing excise duties on natural gas, Sarraf said the report provides a framework for compensation to states to offset revenue losses. While he didn’t recall the exact figures, he confirmed that the proposal takes into account the fiscal impact of such a move.
