THINK Gas Seeks VAT Cut on Natural Gas in Madhya Pradesh, Meets CM Mohan Yadav
THINK Gas CEO Abhilesh Gupta met Madhya Pradesh Chief Minister Mohan Yadav to discuss a possible natural gas VAT reduction, its impact on PNG and CNG affordability, industrial competitiveness and the state's clean energy transition.
During the meeting, THINK Gas representatives highlighted the role of natural gas in the Hon’ble Prime Minister’s vision for India’s energy future. The recent crisis, they said, had underscored the need to expedite efforts to reduce dependence on LPG. The ongoing national drive to convert LPG connections to Piped Natural Gas (PNG) was also highlighted as being aligned with this vision.
THINK Gas emphasised that reducing VAT on natural gas could improve affordability for residential PNG consumers, enhance state revenues, promote cleaner mobility and accelerate Madhya Pradesh’s transition towards a sustainable energy future.
Madhya Pradesh is strategically positioned to emerge as a leading natural gas-driven economy, supported by its central location and growing industrial and economic activity. Rationalising VAT on natural gas is expected to improve the affordability and competitiveness of PNG and Compressed Natural Gas (CNG), encouraging wider adoption among households, industries, commercial establishments and the transport sector.
The company also pointed out that several neighbouring states have implemented lower VAT rates on natural gas, contributing to greater fuel penetration, industrial growth and cleaner mobility. A similar approach in Madhya Pradesh could help attract investment, strengthen economic competitiveness, expand consumer access to cleaner fuels and advance the state’s sustainability and energy transition objectives.
THINK Gas appreciated the Chief Minister’s positive engagement on the issue and expressed expectations that continued collaboration with the Government of Madhya Pradesh would further support the state’s clean energy transition.
The meeting also covered the company’s ongoing investments in expanding natural gas infrastructure across Madhya Pradesh. These investments include the development of Domestic Piped Natural Gas (DPNG) connections, PNG networks and CNG stations to improve energy accessibility and support economic development across urban, industrial and rural areas.
As one of the key contributors to the development of City Gas Distribution infrastructure in Madhya Pradesh, THINK Gas believes that a competitive tax regime could unlock significant value for consumers and industry. A reduction in VAT on natural gas could directly benefit lakhs of domestic households using PNG and CNG consumers, lower energy costs, support industrial competitiveness, encourage investment and accelerate the state’s transition towards a cleaner and more sustainable energy future.

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