PUDUCHERRY: The Puducherry government has slashed the Value Added Tax (VAT) on Piped Natural Gas (PNG), the distribution of which (by a private firm) is set to commence in the next three to six months to households (cooking gas), commercial establishments, and industries in Puducherry.
According to a recent notification issued by Lt.Governor K Kailashnathan, the VAT on Domestic PNG has been slashed from 14.5% to 5%. For commercial and industrial use, the rate has been brought down from 14.5% to 7.5%. These revisions came into effect on April 1, 2025.
Further, East Coast Natural Gas Distribution Pvt. Ltd, which has been appointed for the supply of PNG, has sought tax relief from the central government in the form of reduced GST on input gas costs, A Magendiran, assistant vice president of the company told TNIE. For domestic consumers, the price for the same volume of a LPG cylinder would be around Rs 550 to Rs 600, he added.
The company is in the final stage of commissioning the first phase of the 18-kilometre main pipeline stretching from the hook-up point at Sorapet to Mettupalayam in the next two to three months, Magendiran said. The process of energising the main pipeline is likely to begin thereafter, he added. An additional 14 kilometres of main pipeline will be laid to cover peripheral areas by the end of the current financial year.
Now, the work of laying branch lines to connect domestic households and other consumers with the main line would begin shortly. Permissions have already been obtained for Bussy Street and Thiruvalluvar Salai, where work is set to begin within a week, while permissions are awaited in other parts of the town, including the Boulevard area, he said
The network, once energised, is expected to initially serve 8,000 to 10,000 consumers this financial year, with a total capacity to cater to 20,000 to 25,000 consumers in the region, Magendiran added.