New Delhi, April 16 -- Facing a gas supply squeeze amid the West Asia war, India is considering a steep increase in blending compressed biogas (CBG) into city gas networks-potentially up to 20%-in a phased manner to reduce import dependence and cushion supplies, said two people aware of the discussions.

The blending mandate for city gas distribution (CGD) entities was 1% as of fiscal year 2026 (FY26), to be gradually increased to 3%, 4% and 5% in FY27, FY28 and FY29, respectively. The government is now considering enhancing this to well beyond 5% and with a much more stringent timeline.

This underscores a policy shift towards scaling domestic CBG output, as India prioritizes essential gas use and looks to ease pressure on liquefied natu...