THINK Gas Managing Director and Chief Executive Officer Abhilesh Gupta met Madhya Pradesh Chief Minister Mohan Yadav to discuss a potential reduction in Value Added Tax (VAT) on natural gas in the state. The meeting focused on improving the affordability of piped natural gas (PNG) and compressed natural gas (CNG), encouraging cleaner fuel adoption and supporting the expansion of natural gas infrastructure across Madhya Pradesh.
During the meeting, THINK Gas highlighted the role of natural gas in India’s energy transition and the need to reduce dependence on liquefied petroleum gas (LPG). The company also referred to the ongoing national drive to convert LPG connections to PNG, which aims to expand access to natural gas for residential consumers.
According to THINK Gas, reducing VAT on natural gas could lower fuel costs for households and businesses, improve industrial competitiveness and encourage the adoption of cleaner fuels. The company also stated that a more competitive tax structure could support state revenue growth by encouraging wider natural gas consumption and expanding the customer base.
VAT Reduction Could Boost PNG and CNG Adoption
Madhya Pradesh’s central location and expanding industrial and economic activity could support the development of a stronger natural gas market. THINK Gas highlighted that rationalising VAT could make PNG and CNG more affordable for households, commercial establishments, industries and the transport sector.
The company noted that several neighbouring states have adopted lower VAT rates on natural gas. According to THINK Gas, similar measures in Madhya Pradesh could encourage greater fuel adoption, attract investment, strengthen industrial competitiveness and support cleaner mobility.
Lower taxation could also help expand access to natural gas among domestic consumers and businesses while advancing the state’s sustainability and energy transition objectives.
THINK Gas Expands Natural Gas Infrastructure in Madhya Pradesh
The meeting also covered THINK Gas’ ongoing investments in natural gas distribution infrastructure across Madhya Pradesh. These initiatives include expanding domestic piped natural gas (DPNG) connections, developing PNG networks and establishing compressed natural gas stations.
The infrastructure expansion aims to improve access to natural gas across urban, industrial and rural areas while supporting economic development and the adoption of cleaner fuels.
As a key contributor to city gas distribution infrastructure in Madhya Pradesh, THINK Gas is seeking a policy environment that supports wider natural gas adoption. The company stated that lower VAT could benefit households using PNG, CNG consumers and industrial users through reduced energy costs.
A more competitive tax structure could also encourage investment in gas distribution networks, improve access to cleaner fuels and support industrial growth across the state.
Natural Gas Tax Policy in Focus
The discussions come amid efforts to expand the role of natural gas in India’s energy mix. Greater adoption of PNG and CNG can support the transition towards cleaner fuel options in households, commercial establishments, industries and transport.
THINK Gas has highlighted VAT rationalisation as a potential measure to improve affordability and accelerate natural gas adoption in Madhya Pradesh. Continued engagement between the company and the state government could help advance discussions on taxation, infrastructure development and access to cleaner energy.
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