India’s pipeline infrastructure across the water, wastewater, and oil and gas sectors is undergoing rapid expansion and technological transformation. The current trajectory is marked by regulatory reforms, renewed public investment, and the integration of technological and operational efficiencies. In the water and wastewater sector, the focus has gradually shifted from asset creation to performance enhancement, driven by efforts to improve service reliability, reduce leakages and adopt digital monitoring systems for better life cycle management.
Meanwhile, the midstream oil and gas segment is witnessing corridor expansion, regulatory restructuring, and convergence of automation, digitalisation and predictive asset management tools. These trends reflect a broader shift from capacity augmentation towards resilience building, interoperability and data-driven optimisation, signalling a more mature and efficiency-oriented phase in India’s pipeline infrastructure development.
Evolving regulatory landscape
India’s pipeline infrastructure development across the water and wastewater, and oil and gas sectors has been strongly shaped by government policies, budget allocations, regulatory reforms and sector-specific programmes. The focus has increasingly been on achieving national targets, reducing inefficiencies and improving access to services through effective pipeline expansion.
In the water and wastewater sector, flagship programmes such as the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Jal Jeevan Mission (JJM) and the Jal Shakti Abhiyan-Catch the Rain (JSA-CTR) continue to serve as key policy anchors. Under AMRUT, over 73,500 km of water supply pipelines and about 21,750 km of sewer pipelines have been laid as of July 2025. Meanwhile, the JJM has extended piped water supply to around 81 per cent of rural households as of October 2025, and aims to achieve complete coverage by 2028.
The oil and gas sector has also witnessed significant regulatory reforms. As of June 2025, natural gas pipeline infrastructure has received authorisations for around 34,000 km of pipelines, with over 25,400 km operational and 10,400 km under construction. Recent policy measures such as the new uniform pipeline tariff, the LNG Terminal Regulations, 2025, the draft Petroleum and Natural Gas Rules, 2025, and the Oilfield (Regulatory and Development) Amendment Bill, 2024, have all served as positive growth drivers. These regulatory reforms are driving both sectors beyond physical construction towards long-term resilience planning.
Prioritising infrastructure upgrades
Ageing pipelines are a key concern impacting service delivery in both sectors. Over the past year, however, both sectors have made progress in addressing this challenge with targeted reforms.
In the water and wastewater sector, cities like Bengaluru and Chennai have initiated the replacement of ageing water and sewer pipelines, while Pune is making efforts to improve the quality of the existing network. For instance, in October 2025, the Pune Municipal Corporation decided to clean all its drainage pipelines spanning a length of 2,515 km across 142,463 chambers. The cleaning will be done using high-capacity suction and jetting machines over a period of seven years. The initiative will also help eliminate manual intervention in drain cleaning and make the process more efficient. Moreover, construction activity has increased for laying pipelines for wastewater reuse and river rejuvenation. Recent examples include pipelines carrying treated wastewater from the Okhla sewage treatment plant in Delhi, a 500 km sewerage network to intercept and divert sewage inflows that pollute the Nag river in Nagpur, and a 22 km pipeline for transporting industrial effluent to reuse sites near Ahmedabad.
Meanwhile, oil and gas pipelines have undergone significant expansion. The city gas distribution (CGD) segment is growing rapidly, with about 15.4 million domestic piped natural gas (PNG) connections, 45,800 commercial PNG connections and 20,700 industrial PNG connections laid as of August 2025. Petroleum and petroleum product pipelines have also seen growth with over 13,600 km of petroleum and petroleum product pipelines authorised, 9,300 km operational and 4,200 km under construction (as of June 2025). Major corridors, including western, eastern and central pipelines connecting ports, refineries, and demand centres, are currently under expansion. In addition, efforts are under way to extend pipelines from liquefied natural gas (LNG) import terminals inland, such as transporting LNG from the Adani-Dhamra terminal through the existing Nagpur-Jharsuguda pipeline to improve utilisation. Similarly, the Dahej-Uran-Dabhol-Panvel natural gas pipeline is being upgraded to enhance network capacity and ensure stronger supply pressures.
Focus on technological innovation and asset management
Another key trend that is shaping both sectors is the increasing use of technology to improve performance, reduce losses, enhance safety and ensure efficient life cycle management of pipelines. For water and wastewater pipelines, this includes the adoption of supervisory control and data acquisition (SCADA) for various projects under government programmes. As of August 2025, around 230 water supply and 146 sewerage projects are using SCADA under AMRUT. Further, geotagging, mapping and real-time monitoring of pipelines are being promoted. Recently, the mapping of drinking water infrastructure under the JJM onto the PM Gati Shakti’s geographic information system (GIS) platform has been mandated. This aims to improve planning, monitoring and coordination of rural water supply assets including pipelines. It will geotag pipelines at a household level and align them with other infrastructure networks for better convergence. The use of drone mapping, visual inspections, sensors and smart meters to detect abnormalities in water flow or pressure within pipelines is also gaining traction.
In the oil and gas sector, digitalisation and advanced asset management are extending across the upstream, midstream and downstream segments. There is growing convergence between information technology (IT) and operational technology (OT), alongside the deployment of artificial intelligence and machine learning tools, digital twins, real-time sensors, enhanced cybersecurity, predictive maintenance, etc. In May 2025, ABB India completed the deployment of advanced automation and digital solutions for Indian Oil Corporation Limited’s (IOCL) 20,000 km O&G pipeline network. These integrated technologies enable centralised monitoring and control through IOCL’s unified pipeline information management system.
Moreover, digital twins are being developed for refinery expansion projects such as the Numaligarh refinery to monitor asset life cycle; while GIS, SCADA and enterprise resource planning systems are increasingly used for pipeline network mapping and operational oversight. In the CGD segment as well, operators are deploying systems for customer connection tracking, flow/pressure monitoring, network leak detection and operational optimisation, while also trying to standardise and unify data across geographies and pipeline categories.
Challenges and utilisation gaps
While momentum remains strong, both sectors continue to face significant bottlenecks related to capacity utilisation. A key challenge across the water and wastewater and oil and gas pipeline networks is that utilisation often lags behind capacity. In many LNG import terminals or pipelines, capacity exists (or is being built) but throughput remains below potential. Many LNG terminals are under utilised due to constraints in transporting gas from terminals to demand centres. On the domestic production front, India still imports a significant share of its gas requirements. Crude oil imports continue to rise while domestic production has marginally declined. The pipeline build-out must align with actual demand, anchor clients, industrial and municipal consumption, and pricing that encourages usage.
Similar issues exist in the water and wastewater sector, with non-revenue water, leakages and low pressure. Many older networks are leaky or ineffective, and replacement or rehabilitation works are both expensive and complex. While capital investments are better supported under central and state programmes, operations and maintenance (O&M) activities often lag behind. The recurring O&M costs also put a financial burden on utilities and private players. Both sectors continue to face technical capacity constraints, highlighting the need for staff training in planning, digital and asset management as well as building institutional capacity.
Future outlook
Looking forward, the demand for larger pipeline infrastructure is projected to continue rising. In the oil and gas sector, natural gas demand is expected to grow significantly, driving the expansion of LNG import capacity. India plans to increase its LNG import capacity by 27 per cent to around 66.7 million metric tonnes per annum (mmtpa) by 2030, from the existing 52.7 mmtpa. Pipeline networks are expected to be expanded for last-mile PNG and CGD connectivity, alongside capacity augmentation in trunk/transmission pipelines.
In the water sector, the focus will shift from mere access to reliability, quality, reuse, and environmental compliance. Digital monitoring systems will be implemented for predictive maintenance. Further, ULBs are seeking support from international donors to augment their pipeline network. In line with this, the Nashik Municipal Corporation is planning to seek a loan worth Rs 7.5 billion from the World Bank to finance the construction of sewerage pipelines in Nashik, Maharashtra. As per preliminary estimates, the length of the sewerage network will be around 200 km. It also aims to replace the outdated and ageing sewerage pipelines, and strengthen overall sewerage infrastructure in the city. Such efforts are being witnessed in other major urban centres as well. Innovations such as hydrogen pipelines or blending are expected to gain traction in the oil and gas sector, along with dedicated pipeline networks for the transportation of treated wastewater for industrial reuse.
As both sectors expand, there is a need for regulatory rationalisation, demand growth, data-driven asset management, digital technology adoption and stronger institutional capacity to ensure that infrastructure creation translates into improved service delivery
