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PM Modi Launches BPCL’s Rs 3,685 Crore City Gas Distribution Project in Tamil Nadu
Mar 14, 2026
Narendra Modi, the Prime Minister of India, laid the foundation stone for a major City Gas Distribution (CGD) project being developed by Bharat Petroleum Corporation Limited (BPCL) in the districts of The Nilgiris and Erode in Tamil Nadu.
The project involves an approved investment of Rs 3,685 crore and aims to build an extensive gas distribution network across the two districts. BPCL received authorization to develop the CGD infrastructure from the Petroleum and Natural Gas Regulatory Board on March 15, 2022.
As part of the project, BPCL plans to provide piped natural gas (PNG) connections to around 884,777 households. The network will also serve more than 200 commercial establishments and industrial consumers. Additionally, over 200 compressed natural gas (CNG) stations will be developed to support the adoption of cleaner fuel for transportation across the region. The project is expected to be completed by March 31, 2030.
The development of the CGD network will involve laying steel and MDPE pipelines to create a reliable gas distribution infrastructure. Under the minimum work programme, BPCL aims to install approximately 1,316 inch-km of pipeline network.
Natural gas for the project will be supplied through a connection at Perundurai in Erode district from the pipeline network of Gas Authority of India Limited (GAIL). Pipeline construction activities have already started from the City Gate Station in Perundurai toward Erode city. Registration of domestic customers has also begun in these areas as the initial phase of network expansion progresses.
The transition to PNG and CNG is expected to significantly reduce greenhouse gas emissions—by about 24%—while improving air quality in the region. In residential areas, PNG adoption could reduce LPG usage by around 40–50%. Commercial establishments such as hotels and restaurants may cut LPG consumption by roughly 50–60%, while industries switching to natural gas could lower their LPG dependence by 60–80%.
The project is also expected to create more than 22 lakh man-days of direct and indirect employment, contributing to local economic growth. Once completed, the CGD network will provide access to clean and reliable energy for more than 2.98 million people in The Nilgiris and Erode districts.