Program on Energy and Sustainable Development Working Paper #43
The state-owned Indian natural gas sector has been slowly moving towards deregulation for close to a decade. However, rather than wholly introducing free market forces into the existing state-managed sector, India has developed a separate, almost entirely decontrolled gas market alongside the existing sector.
The major challenge to complete gas sector reform that remains is how to transition gas users from the state-managed sector to the free market. This paper explains the origins of this hybrid market and its likely evolution.