Bharat Petroleum Corporation Limited (BPCL) and Oil India Limited (OIL), both Maharatna public sector undertakings, have signed a joint venture agreement to build a city gas distribution network across Arunachal Pradesh.
The new venture aims to enhance clean energy access, with plans to provide compressed natural gas (CNG) and piped natural gas (PNG) to domestic, commercial, and industrial consumers. Signed in Mumbai, the agreement is a significant milestone for the Northeast’s energy transformation and aligns with India’s vision of a gas-based economy.
A New Chapter in Clean Energy for Arunachal
This city gas network marks the start of a major modernisation drive for Arunachal Pradesh’s energy sector, as CNG stations and PNG pipelines will soon become part of daily life for residents and businesses. BPCL and OIL officials described the partnership as a cornerstone for regional development, with BPCL CMD Sanjay Khanna affirming, “This joint venture reaffirms BPCL’s commitment to expanding clean energy access across India, with special focus on the Northeast”.
OIL CMD Dr Ranjit Rath highlighted the state’s growing role in India’s energy landscape, noting that “the establishment of CGD in Arunachal Pradesh is a significant step in our ongoing initiative to realise the vision of bringing clean and reliable energy to the region”.
Project Details and Strategic Importance
Awarded under the 12th City Gas Distribution Bid Round by the Petroleum and Natural Gas Regulatory Board, the project will see 50:50 equal shareholding between BPCL and OIL, with up to 10% potentially offered to the Arunachal government to enable local participation.
The CGD network will not only supply households with PNG but also support industries and vehicles with CNG, promising job creation, industrial growth, and a reduction in carbon emissions. The project builds upon OIL’s existing legacy in the state-particularly following the commissioning of the Kumchai-Kusijan gas pipeline-positioning Arunachal as an anchor point for India’s hydrocarbon ambitions in the Northeast.
Broader Impact: For a Greener, Connected Future
This JV reflects a national movement towards cleaner, more sustainable fuels, fulfilling India’s commitment to increasing the share of natural gas in its energy mix. BPCL and OIL are leveraging their expertise to ensure the project delivers economic, environmental, and social benefits locally-improved energy access, better air quality, and a rise in living standards, especially for underserved communities.
By integrating Arunachal Pradesh into the national energy infrastructure, the initiative also seeks to strengthen the state’s economy and promote industrialisation in a previously underserved region.
The Logical Indian’s Perspective
The Logical Indian applauds this partnership as an example of how public sector innovation, community advocacy, and government policy can converge to effect meaningful positive change. Clean energy is not just an environmental goal; it is a path to dignity, equality, and fairness for every community.
