Ladakh Lieutenant Governor Vinai Kumar Saxena announced a significant reduction in value-added tax (VAT) on natural gas, including CNG and PNG, from 21 per cent to 5 per cent on Thursday. According to reports from Business Standard, this move represents a major step towards promoting affordable clean energy and improving ease of living for people in the Union Territory. The reduction brings Ladakh at par with states like Gujarat, Andhra Pradesh and Karnataka, advancing Prime Minister Narendra Modi's broader vision for a sustainable and carbon-neutral future.
The VAT reduction is expected to give a major boost to the Centre's larger plan to roll out the city gas distribution (CGD) network to provide affordable piped gas to households across Ladakh. As reported by Business Standard, Saxena emphasized that this move would help offset the high cost of transporting energy due to Ladakh's difficult terrain and extreme climatic conditions. The initiative aims to encourage consumers to adopt cleaner fuels while ensuring essential energy remains affordable and accessible to all residents.
The UT Administration remains committed to building a connected, competitive, clean and sustainable Ladakh under the current leadership. According to Business Standard, Saxena stated that the administration is focused on ensuring that essential energy remains affordable and accessible to all residents while advancing the broader government vision for sustainable development. The move aligns with the Centre's efforts to promote clean energy adoption across India's diverse regions.
India has achieved a significant milestone with 288GW of renewable energy capacity as of June 30, 2026, accounting for approximately 54% of the country's total installed energy capacity, according to JMK Research & Analytics. Solar energy dominates this capacity at 56% or 162GW, followed by wind at 20% (57GW) and large hydro at 18% (52GW). The country also has around 149GW of solar, wind, hybrid and storage projects in the pipeline, likely to be commissioned over the next 4-5 years, demonstrating the continued momentum toward clean energy transition across the country.
