Cabinet Secretary Shri Rajiv Gauba delivered a keynote address at the 20th Foundation Day of the Petroleum and Natural Gas Regulatory Board (PNGRB), emphasizing the critical role of regulation, market-oriented reforms, and institutional capacity in strengthening India's energy security and supporting the country's journey towards Viksit Bharat@2047. He noted that the petroleum and natural gas sector operates in an increasingly complex global environment marked by geopolitical tensions, supply disruptions, and heightened energy-security risks.
Gauba traced India's regulatory journey from colonial-era laws and foreign ownership at independence through decades of state control and administered pricing, to progressive liberalization since the late 1990s that ended the 40-year nomination monopoly and dismantled the administered pricing mechanism. He highlighted that the creation of PNGRB in 2006 was an important institutional step to ensure fair competition, investor confidence, and consumer protection.
The Cabinet Secretary specifically noted PNGRB's contribution to building the regulatory architecture for natural gas pipelines, emphasizing that its common carrier and contract carrier principles have ensured open access to pipeline infrastructure and facilitated greater competition in the downstream market. He stated that such regulatory work, while often not visible, is essential for creating predictable markets, building investor confidence, and strengthening public trust.
Gauba underlined that India's growing energy requirements make diversification and expansion of domestic energy capacity important elements of the country's long-term strategy. With energy demand expected to rise substantially alongside urbanization, industrialization, and improving living standards, he stressed the need to accelerate domestic exploration and production, particularly in frontier and deep-water activity, while leveraging technology, private investment, and the capabilities of public-sector enterprises.
He emphasized the importance of accelerating India's transition toward a gas-based economy, which would require an integrated, efficient, and economically viable natural gas value chain including strengthening of the National Gas Grid, improving utilization of pipelines and LNG terminals, and expanding the City Gas Distribution network. Gauba also noted that regulatory reforms should continue to remove unnecessary frictions and ensure the regulatory framework keeps pace with emerging areas such as hydrogen, syngas, and carbon dioxide pipelines.
Regarding PNGRB's future role, Gauba stressed that regulation must evolve alongside technological change and new business models while maintaining primacy of safety and consumer protection. He identified regulatory predictability, ease of doing business, and continued reform as important guiding principles for the Board. He further emphasized that regulatory independence must be accompanied by transparency, reasoned decision-making, and accountability, with regulators operating at arm's length while remaining aligned with overarching national policy objectives.