India’s natural gas supply is expected to more than double in the coming years. Effective utilization of this gas is of critical importance, as it will have a tremendous impact on the energy and food security. It can reduce India’s dependence on oil imports, increase efficiency of gas utilization, and achieve wider spread of benefits of gas. However, the current gas utilization policy has several limitations in terms of the process of its formulation as well as its contents. This paper suggest a transparent and participative process to formulate gas utilization policy, and presents large benefits of some utilization options – that have not been given due priority in the current policy.