PM Modi Lays Foundation Stone for BPCL’s INR 3,685 Crore CDG Project in Tamil Nadu
BPCL’s CGD project involves a total approved investment of INR 3,685 crore and aims to establish a comprehensive gas distribution network across the geographical areas of The Nilgiris and Erode districts of Tamil Nadu.
March 13, 2026. By News Bureau
The CGD project involves a total approved investment of INR 3,685 crore and aims to establish a comprehensive gas distribution network across the geographical areas of The Nilgiris and Erode districts. BPCL received authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB) on March 15, 2022 to develop the CGD network in these districts.
Under the project, BPCL plans to provide Piped Natural Gas (PNG) connections to around 884,777 households, along with connections for more than 200 commercial establishments and industrial customers. In addition, more than 200 Compressed Natural Gas (CNG) stations will be developed to promote the use of cleaner fuel for vehicles across the region. The project is scheduled for completion by March 31, 2030.
The development of the CGD network will involve the laying of steel and MDPE pipelines to create a robust and reliable gas distribution infrastructure. The Minimum Work Programme target includes the installation of 1316 inch-km of pipeline network. Natural gas supply for the project will be sourced through a hook-up point at Perundurai in Erode district from the Gas Authority of India Ltd. (GAIL) network.
Pipeline laying activities have already commenced from the City Gate Station at Perundurai, connecting to Erode city. Domestic customer registrations have also started in Perundurai and Erode, marking the initial phase of consumer on-boarding and network expansion.
The shift to PNG and CNG is projected to reduce greenhouse gas emissions by around 24 percent, supporting environmental sustainability and improved air quality in the region.
In the household segment, PNG adoption could reduce LPG usage by around 40–50 percent in transition areas. The commercial sector, including restaurants and hotels, may witness a reduction of about 50–60 percent in LPG consumption, while industries shifting to natural gas could lower LPG dependency by around 60–80 percent through a reliable pipeline-based supply.
The project is expected to generate more than 22 lakh man-days of direct and indirect employment, providing a strong boost to local economic activity. Once fully operational, the CGD network will provide access to clean and reliable energy for more than 2.98 million people across The Nilgiris and Erode districts.
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