DPIIT Proposes Easing Industrial Gas Cylinder Storage Norms to Boost Ease of Doing Business

Livemint - Economy · 27 Feb 2026 · 2 min read
Prelims · Economy Mains · GS3 Economy Medium relevance

The Department for Promotion of Industry and Internal Trade (DPIIT) has proposed amendments to the Gas Cylinders Rules, 2016, easing storage and licensing norms for industrial gas cylinders to reduce compliance burdens and enhance operational efficiency.

Key points

DPIIT under the Ministry of Commerce and Industry has proposed amendments to the Gas Cylinders Rules, 2016, framed under the Explosives Act, 1884, to simplify storage and licensing norms for industrial gas cylinders.

The draft notification proposes omitting Rule 48, which currently requires a No Objection Certificate (NOC) from local authorities for granting licenses related to storage of compressed gases.

The amendments aim to reduce compliance burdens by simplifying documentation requirements for obtaining licenses related to gas cylinder operations, including filling, storing, and importing.

[GS3-Economy] The move aligns with the government's ease of doing business initiatives, potentially reducing processing time for licenses and renewals, benefiting sectors like manufacturing, healthcare, and energy.

The draft allows higher stacking of industrial cylinders under certified structured packing systems, provided safety standards are maintained, which could reduce logistics costs and improve inventory management.

Industrial gas cylinders are critical for sectors like healthcare (oxygen), manufacturing (welding gases), and energy (CNG, hydrogen), with India's market valued at $217.4 million in 2024, projected to grow to $335.2 million by 2033.

The proposed changes reflect current industry practices and aim to address operational bottlenecks, particularly in space-constrained facilities, while ensuring safety standards are not compromised.

Way Forward: Implement robust monitoring mechanisms to ensure safety compliance, conduct regular audits of storage facilities, and provide training for handlers to mitigate risks associated with relaxed norms.

Key terms

DPIIT

The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry formulates and implements policies to promote industrial growth, ease of doing business, and internal trade. It plays a key role in regulatory reforms and investment facilitation.

Explosives Act, 1884

A legislation regulating the manufacture, possession, use, sale, transport, and importation of explosives in India. It provides the legal framework for safety standards and licensing, amended periodically to align with technological and industrial advancements.

Gas Cylinders Rules, 2016

Rules framed under the Explosives Act, 1884, governing the manufacture, storage, transport, and use of gas cylinders. They ensure safety standards and compliance, with amendments proposed to reduce regulatory burdens while maintaining safety.

Ease of Doing Business

A government initiative aimed at simplifying regulatory processes, reducing compliance burdens, and improving the business environment in India. It includes reforms in licensing, inspections, and approvals to enhance operational efficiency and attract investments.