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Incorporated in 1998, IGL took over Delhi City Gas Distribution Project in 1999 from GAIL (India) Limited (Formerly Gas Authority of India Limited ). The project was started to lay the network for the distribution of natural gas in the National Capital Territory of Delhi to consumers in the domestic, transport, and commercial sectors. With the backing of strong promoters 'GAIL (India) Ltd. and Bharat Petroleum Corporation Ltd. (BPCL) 'IGL plans to provide natural gas in the entire capital region. To provide safe, convenient and reliable natural gas supply to it's customers in the domestic and commercial sectors; and To provide a cleaner, environment-friendly alternative as auto fuel to Delhi's residents. This will considerably bring down the alarmingly high levels of pollution. The transport sector uses natural gas as Compressed Natural Gas (CNG) , while the domestic and commercial sectors use it as Piped Naural Gas (PNG).
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