HSA | Projects, Energy & Infrastructure Monthly Newsletter – March 2026

Ministry of Petroleum and Natural Gas (MoPNG) has issued the Natural Gas (Supply Regulation) Order on March 9, 2026 

• The Ministry of Petroleum and Natural Gas (MoPNG), on March 9, 2026, has issued the Natural Gas (Supply Regulation) Order, 2026, in exercise of powers under Section 3(2)(d) and (f) of the Essential Commodities Act, 1955. 
• This order regulates production, sector-wise allocation, diversion, distribution, disposal, acquisition, use, and consumption of natural gas, including Liquefied Natural Gas (LNG) and regasified LNG, due to LNG shipment disruptions through the Strait of Hormuz and force majeure invocations by suppliers. 
• The Central Government directs regulation of production, supply, and distribution to maintain supplies and ensure equitable availability for priority sectors based on the past six-month average gas consumption, subject to operational availability. 
  • Priority Sector I receives 100% supply for domestic Piped Natural Gas (PNG), Compressed Natural Gas (CNG) for transport, Liquefied Petroleum Gas (LPG) production, including shrinkage requirements, and pipeline compressor fuel or other essential operational needs. 
  • Priority Sector II ensures 70% supply to fertilizer plants, provided units use gas solely for fertilizer production with a certificate furnished to Petroleum Planning and Analysis Cell (PPAC) via the Ministry of Fertilizer, and no allocation is diverted between units. 
  • Priority Sector III maintains 80% supply to tea industries, manufacturing, and other industrial consumers via the national gas grid, with allocation principles to be evolved by PPAC in coordination with the Industry Committee. 
  • Priority Sector IV provides 80% supply to industrial and commercial consumers through City Gas Distribution networks, with allocation principles to be evolved by PPAC in coordination with the Industry Committee. 
• Priority sector entities receiving pooled gas must undertake that the price is acceptable, the force majeure mitigation supply will not face litigation despite variances with existing contracts, and they will not resell the diverted gas. 
• Oil refining companies shall absorb LNG disruption impacts by reducing refinery gas allocation to approximately 65% of past six-month consumption, subject to operational feasibility. 
• Gas Authority of India Ltd. (GAIL), in coordination with PPAC, shall manage natural gas supplies to implement these directions and submit invoice prices for every diverted volume to PPAC. 
• Every producer, importer, transporter, marketer, or distributor of natural gas, including LNG and regasified LNG, must furnish details on production, imports, stocks, allocation, supply, and consumption to the Central Government or authorized officers, with PPAC designated as the nodal agency. 
• The provisions of the order shall apply even if they conflict with existing Gas Sale Agreements (GSAs) or other commercial arrangements. 

Ministry of Petroleum and Natural Gas (MoPNG) has notified the sale of Ethanol Blended Petrol with Prescribed quality standards on February 17, 2026

• The Ministry of Petroleum and Natural Gas (MoPNG) on February 17, 2026, has notified the sale of Ethanol Blended Petrol with prescribed quality standards (Notification) under Section 3 of the Essential Commodities Act, 1955, read with paragraph 6 of the Motor Spirit and High-Speed Diesel (Regulation of Supply and Distribution and Prevention of Malpractices) Order, 2005, directing oil companies to supply Ethanol Blended Motor Spirit across all States and Union Territories. 
• The Notification supersedes the earlier notification dated June 2, 2021, while ensuring that actions already taken under the previous rule remain unaffected. 
• The Central Government directs oil companies to sell Ethanol Blended Motor Spirit with up to 20% Ethanol content as per Bureau of Indian Standards (BIS) specifications and a minimum Research Octane Number (RON) of 95 across all States and Union territories. 
• The Central Government may, in special circumstances, permit oil companies to sell Ethanol Blended Petrol with specified RON standards as per BIS for designated regions and time periods. 

Ministry of Petroleum and Natural Gas (MoPNG) issued a Revised Order on Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999 on March 09, 2026 

• The Ministry of Petroleum and Natural Gas (MoPNG) on March 09, 2026, issued a Revised Order (Order) to prioritize availability of LPG in public interest for domestic consumption, under Clauses 3 and 5 of the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999 (1999 Order), read with Section 3 of the Essential Commodities Act, 1955 (ECA, 1955). 
• All domestic and Special Economic Zone (SEZ) oil refining companies, including petrochemical complexes, must maximize production and ensure that all C3 and C4 streams, whether produced, recovered, fractionated, or otherwise available, are used for LPG pool production and supplied exclusively to Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL). 
• Oil refining companies are restricted from diverting, utilizing, processing, cracking, converting, or otherwise using such C3 and C4 streams for the manufacture of petrochemical products or any downstream derivatives. 
• Public sector Oil Marketing Companies (OMCs) are required to ensure that LPG procured under this order is supplied and marketed solely to domestic LPG consumers. 
• Any contravention of the Order shall attract penalties under the 1999 Order, ECA 1955, and other applicable laws. 
• The Order supersedes the earlier order dated March 05, 2026, and comes into force with immediate effect and will remain in force until further orders of the Central Government. 

Ministry of New and Renewable Energy (MNRE) has issued an Office Memorandum amending the Procedure for inclusion/updating Wind Turbine Model in the Approved List of Models and Manufacturers (ALMM) on February 16, 2026 

• The Ministry of New and Renewable Energy (MNRE), on February 16, 2026, issued an Office Memorandum (OM) amending the procedure for inclusion and updating of Wind Turbine Models in the Approved List of Models and Manufacturers (ALMM) of Wind Turbines originally issued on July 31, 2025, while introducing targeted relaxations in compliance timelines for critical components.
• Additional time has been granted for compliance with requirements relating to special bearings, including main bearings, yaw bearings, and pitch bearings, on account of prevailing supply chain constraints. 
• Wind power projects for which bids were closed prior to July 31, 2025, have been exempted from compliance requirements concerning main bearings, provided such projects are commissioned within 3 years from July 31, 2025. 
• Projects already bid out or to be bid before July 31, 2027, have been granted exemption from main bearing requirements, with such requirements to be re
  evaluated after two years based on supply chain conditions.
• Wind power projects to be commissioned within 18 months from July 31, 2025, under captive, open access, and third-party sale arrangements have been accorded additional exemptions under the revised framework. 
• The OM further provides for exemptions in specific scenarios, including:
  • A general exemption period of two years for compliance with main bearing requirements, subject to review, extending up to January 31, 2029. 
  • A separate exemption period of one year for compliance with yaw and pitch bearing requirements, extending up to January 31, 2028. 
• Apart from the above, all other provisions of the OM dated July 31, 2025, continue to remain unchanged. 

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