Govt comes up with incentive scheme to boost domestic PNG connections across India

With an aim of bringing clean, safe and affordable piped cooking gas to more households across the country, the Government of India has approved an Incentive Scheme for the Promotion of Domestic PNG (Piped Natural Gas) Connections. The scheme will come into effect from September 1, 2026. The scheme is designed to speed up the expansion of active PNG connections, helping more families start using piped natural gas in their kitchens at the earliest. Currently, there are 1.74 crore domestic PNG connections across the country. The new scheme will provide direct incentives to City Gas Distribution (CGD) companies to convert unbilled connections into active connections and expand the PNG network to new areas. PNG provides households with a safer, cleaner and more convenient alternative to LPG cylinders and traditional cooking fuels. Under the scheme, eligible CGD entities will receive an additional 200 SCM (Standard Cubic Metres) of domestically produced, lower-priced (APM) gas for every new billed domestic PNG connection above the threshold set for their respective Geographical Area. The scheme will be implemented in two tranches over a period of six months. The additional gas allocation will help CGD entities replace some of the costlier Liquefied Natural Gas (LNG) they currently procure for their Compressed Natural Gas (Transport) segment. This will reduce their overall gas-sourcing costs. These cost savings are likely to reduce the payback period for capital expenditure incurred in domestic PNG connections from around 10 years to around 3 years. This will give CGD companies a strong financial incentive to expand household PNG connections more rapidly.