Pipes Ready, People Not

Rental Hurdles, Structural Gaps Stand Amid Govt’s Aggressive PNG Push

By Shubhangi Bhatia

What?

Under the shadow of a worsening West Asia crisis, the Indian government has pulled the trigger on a strategic energy shift. A new directive mandates that urban households in gas-ready areas must transition to Piped Natural Gas (PNG), with traditional LPG cylinder supplies slated for termination within three months for those who fail to adapt.

To bridge the gap, the Centre has mandated a uniform framework to slash infrastructure hurdles, capping approval fees and enforcing deemed granted timelines for pipeline laying.

While the policy aims for a seamless switch, the reality is more complicated: modern high-rises are transitioning effortlessly, while several households in older rented blocks remain stuck in a tug-of-war between reluctant landlords and an aggressive state mandate.

“Unlike LPG, which offers immediate incentives like free stoves (chulhas), PNG requires a psychological shift. There are massive capex investments by the companies, yet consumers refuse connections despite the available network, due to a lack of awareness and the absence of upfront perks,” Dr KR Kaushik, Former Deputy Director General of the Association of City Gas Distribution (CGD) Entities (ACE), told The Core.

Why?

India’s PNG rollout has traditionally been quite lopsided. Data from January 2026 reveals a troubling lag: while total connections reached 1.65 crore (up from 1.42 crore in 2025), this is a fraction of the 12.63 crore target set for 2034.

ICRA’s Senior Vice President and Co-Group Head, Corporate Ratings, Prashant Vasisht, told The Core that household PNG connections have generally lagged official targets. He attributed this to the "host of approvals" required for capex that stifle rollout speed, alongside consumer hesitation over "upfront deposit requirements.”

More concerning is the activity gap: of the 1.65 crore existing reported connections, only 1.03 crore are actually active, leaving several dormant meters gathering dust on walls.

A fragmented state-level regulatory landscape is a primary barrier to meeting PNG growth targets, Dr Kaushik said. He said there is a need for a unified national-level CGD policy to resolve the patchwork of varying rules and VAT charged by the states.

This isn’t just about how you boil water; it’s a stress test for India’s energy sovereignty. If the last-mile roadblocks are not solved, the goal of a 15% gas-based economy by 2030 will remain a pipe dream.

Here’s how I use Attio to run my day.

Attio is the AI CRM with conversational AI built directly into your workspace. Every morning, Ask Attio handles my prep:

• Surfaces insights from calls and conversations across my entire CRM

• Update records and create tasks without manual entry

• Answers questions about deals, accounts, and customer signals that used to take hours to find

All in seconds. No searching, no switching tabs, no manual updates.

Ready to scale faster?

Start now →

95.22

That’s how much the rupee slid to — a record low — before settling at 94.78, as escalating geopolitical tensions and capital outflows rattled markets.

Catch Up Quick: Analysts pointed to the intensifying West Asia crisis as a key trigger. Rising oil prices, driven by fears of supply disruptions, pushed up India’s import bill and weakened the currency. At the same time, a stronger dollar globally added pressure, as investors flocked to safe-haven assets amid uncertainty.

As well, sustained foreign portfolio investor (FPI) outflows deepened the slide. Overseas investors have continued to pull money out of Indian equities, preferring higher yields and safety in US assets. This capital flight has reduced dollar inflows into India, putting further strain on the rupee.

Pivot: However, government officials and policymakers struck a more measured tone. Finance Minister Nirmala Sitharaman said that the rupee is “absolutely going fine.” 

Setup: Some experts also argued that a weaker rupee is not entirely negative. As Amit Pabari, Managing Director at CR Forex Pvt. Ltd noted on The Core Report, a softer currency can boost export competitiveness by making Indian goods cheaper in global markets, while also supporting domestic manufacturing.

Still, the near-term outlook remains uncertain, with currency movements likely to track global risk sentiment, oil prices, and the trajectory of foreign capital flows.

HDFC Governance Heat

Former HDFC Bank chairman Atanu Chakraborty’s abrupt exit has raised governance concerns, with the former bureaucrat pointing to differences over “values and ethics.” He told CNBC-TV18 in an exclusive interview on Monday that the issues were not sudden, adding, “Something goes on for eight years, and suddenly we take an action.”

Background: Reuters reported that the departure has exposed internal rifts and leadership strains at India’s largest private lender, following its merger with HDFC Ltd in 2023. "My resignation letter needs to be read in its entirety... I have also said towards the end that I have great faith in the verve and energy of the middle-level management. That’s what I always look at. The senior level will move on, but the middle level is very important, and that is where I see a great amount of energy and verve; they need to be channelised,” Chakraborty said in the interview.

The Turning Point: After Chakraborty’s resignation, three senior employees at the bank and 12 others faced action. Chakraborty believes that the conduct issues in question should not have arisen in the first place. “I feel that these conduct issues should not arise at the first place, or the tight supervision should ensure that even if they arise, they are nipped in the bud. However, if they are termed as technical, it leaves a little bit of a leeway. Perhaps they are experienced people. Their reading may be correct. That's why I have not used divergence. I have used the word incongruence with my values and ethics,” he said.

Energy Crisis Strains Nations

The widening West Asia conflict has triggered a global energy and humanitarian crisis. Following Yemeni Houthi attacks on Israel, Brent crude surged toward $115.66, marking a record 59% monthly jump as the Strait of Hormuz remains effectively closed, Reuters reported.

Tragically, the violence has claimed the lives of an Indian worker in Kuwait and a UN peacekeeper in Lebanon, while Spain has moved to close its airspace to US military flights.

Overview: In response to crippled LPG imports, India has authorised ad-hoc kerosene allocations across 21 states to secure household cooking.

The supply shock is forcing a global pivot back to coal, with Japan, India, and Europe reactivating plants to offset gas shortfalls, threatening years of climate progress, Bloomberg reported.

Setting: Financial markets are reeling from the instability, with investors rapidly unwinding bets across gold and currencies. As President Trump warns of strikes on Iranian infrastructure and missiles strike Tehran and Beirut, the escalating warfare continues to destabilise global trade and essential supply chains.

Output Steady, Demand Diverges

India’s industrial production grew by 5.2% in February 2026, up from 5.1% in January, according to official data released on Monday. Capital goods output surged by 12.5%, while infrastructure and construction goods maintained robust, albeit moderating growth. This underscores an investment-led recovery anchored by core sectors and resilient urban demand.

Critical Moment: The recovery remains uneven. Mining and electricity output slowed significantly, while consumer non-durables contracted by 0.6%, highlighting persistent weakness in mass consumption and a widening urban-rural divide.

Future: Dipti Deshpande, Principal Economist at Crisil warns that West Asia's conflict poses significant downside risks to industrial output through surging prices and supply shortages. As the government rations gas supplies, industries with heavy reliance on gas and its derivatives face imminent production disruptions.

Deficit Near Target

India’s fiscal deficit reached 80.4% of the full-year target by end-February, according to data from the Controller General of Accounts.

By The Numbers: The government recorded a deficit of Rs 12.52 lakh crore during April to February. This is lower than 85.8% in the same period last year, suggesting a more contained fiscal position so far. Total receipts stood at 82% of the annual target, while expenditure reached 81.5%.

What This Means Going Forward: The government has targeted a fiscal deficit of 4.4% of GDP for FY26, with the final outcome hinging on March-end revenues and spending.

The Future of AI in Marketing. Your Shortcut to Smarter, Faster Marketing.

This guide distills 10 AI strategies from industry leaders that are transforming marketing.

• Learn how HubSpot's engineering team achieved 15-20% productivity gains with AI

• Learn how AI-driven emails achieved 94% higher conversion rates

• Discover 7 ways to enhance your marketing strategy with AI.

Outpace your competitors by mastering AI.

Get Your Free Guide

Sensex Hits Two Year Low as Oil Crosses $115 per Barrel

On Episode 835 of The Core Report, financial journalist Govindraj Ethiraj talks to Ajay Bagga, Veteran Market Expert as well as Indrani Bagchi, CEO at Ananta Aspen Centre.

• Stories of the Day

• Sensex hits two year low as oil crosses $115 per barrel

• FIIs March sales at $12 billion hit all time high

• A RBI intervention to control rupee speculation does not seem to have worked

• Why defaults in the global private credit market should worry us

• What are India’s specific plans and options and whether we will intervene as the West Asia war progresses