Mumbai: Bharat Gas Resources Ltd, Unison Enviro Pvt. Ltd and Maharashtra Natural Gas Ltd (MNG) will make a combined investment of 8,000 crore over the next two years to set up city gas distribution networks in Maharashtra, said company officials on Tuesday. City gas distribution (CGD) supplies CNG and PNG for use by both domestic households and by commercial and industrial segments.

While Bharat Gas will set up a CGD network in Ahmednagar, Aurangabad Sangli and Satara districts, Unison Enviro will lay the infrastructure in Latur and Osmanabad. MNG will lay pipelines for its CGD network in Sindhudurg, Valsad, Dhule and Nashik districts.

According to Bharat Gas director Rajendra P. Natekar, under the CGD bidding rounds in Maharashtra, over 2 million domestic PNG connections and 381 CNG stations will be installed by September 2026.

At present CGD authorisation has been given for 92 regions covering 129 districts spread across 23 states and union territories, covering around 20% of India’s population and 11% of its geographical area.

Prime Minister Narendra Modi on Tuesday laid the foundation stones for the projects. The Petroleum and Natural Gas Regulatory Board (PNGRB), India’s gas transportation regulator, has invited bids for setting up city gas networks in 50 geographical areas. PNGRB aims to award contracts for the 10th round by end of February, 2019. The 50 geographical areas will cover 24% of the population. In the previous rounds of city gas bids, 26% of India’s population was covered.

India is targeting to raise the share of natural gas in the overall energy basket to 15% by 2030 from the current 6.5%.