New Delhi: The government has proposed relaxing rules for industrial gas cylinder storage and licensing, including removing some compliance requirements and allowing higher stacking of industrial cylinders under defined safety norms.
In a draft notification, the Department for Promotion of Industry and Internal Trade (DPIIT) under the ministry of commerce and industry has proposed amendments to the Gas Cylinders Rules, 2016, framed under the Explosives Act, 1884. One of the significant changes proposed is the omission of Rule 48 of the gas cylinders rules, which currently requires a no objection certificate (NOC) from local authorities for the grant of licences, including for storage of compressed gases.
Easing storage norms for industrial gas cylinders draws significance as these cylinders are used to store and transport compressed or liquefied gases for commercial and industrial applications. They are widely used in manufacturing and fabrication, particularly for welding and cutting, where gases such as oxygen, acetylene and argon are essential.
The government has invited objections and suggestions from stakeholders within 30 days.
The government has also proposed to simplify documentation requirements for obtaining licences related to gas cylinder operations, by dropping some mandatory paperwork requirements. The move is aimed at reducing compliance burdens for businesses involved in filling, storing and importing gas cylinders.
Industry executives said that reducing documentation requirements could help cut processing time for licences and renewals, especially for companies operating multiple storage and filling facilities.
“It will be helpful as there are several industries where the usage of industrial gas cylinders is high. This will be a significant relief for operators. Reducing compliance requirements encourages ease of doing business and makes processes faster. Otherwise, for every requirement, companies have to wait, obtain licences and submit intimations, which delays operations,” said Arun Kumar Garodia, former chairman of the Engineering Export Promotion Council (EEPC) and managing director of Corona Steel Industry Pvt. Ltd.
A more operationally relevant amendment relates to storage practices. The draft provides that for industrial gas cylinders, higher stacking and reduced gangway space may be permitted by the licensing authority, provided the cylinders are packed in certified structured packing such as racks or cages.
These must be secured with adequate straps, clips or interlocks to ensure the integrity of the cylinders and their fittings, and to enable safe manoeuvring, it said.
The loading and unloading procedures, the draft specifies, must comply with national or international codes.
The draft rules will come into force upon their final publication after consideration of stakeholder feedback.
The original gas cylinders rules were notified in 2016 and have undergone multiple amendments since then.
“The proposed amendments are a practical step towards rationalizing compliance without compromising safety. Allowing higher stacking of industrial cylinders under certified structured packing systems reflects current industry practices. If implemented with proper oversight, this could improve storage efficiency and reduce operational bottlenecks for industrial gas operators, particularly in space-constrained facilities,” said Vinod Kumar, president, India SME Forum.
According to market research and consulting firm IMARC, India’s industrial gas cylinders market reached $217.4 million in 2024, and is expected to swell to $335.2 million by 2033, at a compounded annual growth rate of 4.9%. The market is expanding due to rising demand from sectors such as healthcare, manufacturing, chemicals and energy. Increasing industrialization, government initiatives promoting clean energy, and stricter safety regulations are also contributing to higher product adoption.
In the chemical and petrochemical industries, gases like nitrogen and hydrogen are used for processing, inerting and controlled reactions. In the healthcare sector, oxygen cylinders are critical for hospitals and emergency medical services.
In the energy sector, compressed natural gas cylinders are used for vehicle fuel storage, while hydrogen cylinders are increasingly deployed in clean energy and industrial processes. Industrial gases are also used in food processing for packaging and preservation, in electronics manufacturing for high-purity applications, and in laboratories for testing and research.