(MENAFN- IANS) Puducherry, July 28 (IANS) Puducherry will begin supplying Piped Natural Gas (PNG) to industrial consumers from August 15, marking the first step in a phased rollout of the city gas distribution network.

Supply to domestic and commercial users will follow in the coming months. The project is being implemented by East Coast Natural Gas Distribution Pvt. Ltd., which has completed an 18-kilometre pipeline from Sorapet to Mettupalayam.

“We are on track to energise the pipeline by Independence Day,” said A. Magendiran, Assistant Vice President of the company.

Indian Oil Corporation Ltd. (IOCL) will provide the natural gas, and final commissioning is pending approval from the Petroleum and Explosives Safety Organisation (PESO).

“As soon as we receive the clearance, we will begin operations,” Magendiran added. In the first phase, PNG will be supplied to a single industrial consumer in Mettupalayam as a trial to assess system stability and pricing.

Meanwhile, work on laying pipelines in urban areas for domestic connections is ongoing. However, progress in certain stretches has been delayed due to pending administrative approvals.

Lieutenant Governor K. Kailashnathan has directed departments, including the Public Works Department (PWD), to expedite the clearance process to avoid further delays.

The network will expand in phases, with an additional 14 kilometres of pipeline expected to be laid before the end of the financial year.

The supply will begin in town centres before reaching peripheral areas. The gas distribution network aims to serve 8,000 to 10,000 consumers within the first year and has the capacity to eventually cover up to 25,000 consumers across Puducherry.

Although the project was awarded in March 2024, actual groundwork only began in June due to the general elections and delays in obtaining permissions.

Officials confirmed that the project is now in its final stage of readiness. To encourage adoption, the Puducherry government has reduced VAT on domestic PNG from 14.5 per cent to 5 per cent, and to 7.5 per cent for commercial and industrial users, effective April 1, 2025.

The company has also approached the central government seeking GST relief on input gas costs. PNG for domestic consumers is expected to be priced between Rs 550 and Rs 600, comparable to the cost of a standard LPG cylinder.

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