The passage discusses various aspects of City Gas Distribution (CGD) infrastructure and its

development during the Eleventh Five Year Plan period. Here’s a breakdown and explanation of the
key points:

1. Expansion Plans: Over 200 cities are expected to be connected to the CGD pipeline network over
the next decade. This growth is driven by increased availability of gas resources.

2. Consumer Behavior Shifts: CGD companies previously offered bundled services (infrastructure +
gas supply) primarily for cooking and heating. However, there's a shift towards considering air
conditioning as a viable option. With reduced subsidies on domestic LPG, more households are
expected to switch to piped gas, potentially increasing CGD business margins.

3. Commercial and Industrial Demand: Beyond traditional uses like lighting and heating, cooling and
backup power (using gas) are becoming significant in commercial and industrial sectors. Gas is
economically competitive with alternatives like fuel oil, and there's a potential for gaining carbon
credits by using gas in industries.

4. Transport Sector: There's a growing demand for Compressed Natural Gas (CNG) in the transport
sector due to stringent environmental norms, reducing emissions, and decreasing dependence on
imported oil. This includes large-scale conversions of private vehicles to CNG, CNG variant models by
car manufacturers, and new models of CNG light commercial vehicles. Government entities like
Northern Railways are also exploring the use of CNG in their operations.

5. Potential Growth Areas: The introduction of radio taxis, high-capacity buses (especially in view of
events like the Commonwealth Games), and the adoption of CNG in diesel multiple units are
indications of potential growth in CNG usage.

Overall, the CGD sector is evolving with increased urbanization, changing consumer preferences, and
environmental considerations driving the demand for cleaner and more cost-effective energy
solutions like natural gas. This growth presents opportunities for CGD companies across residential,
commercial, industrial, and transport sectors.