The CGD sector is showing robust growth signs due to rising demand for cleaner fuels, expansion of transmission network and favourable regulatory environment. The government aims to increase the natural gas share in its energy mix from 6% in 2019 to 15% by 2030, which would improve gas penetration and boost consumption. A Sharekhan report expects sustainable, single-digit growth in India’s gas demand for the next 4-5 years.

The sector is also