India, Sept. 13 -- The Government of India has issued a release:
Overview
Piped Natural Gas (PNG) expansion is an important part of India's transition towards cleaner household energy and energy security. Supplying PNG to homes is part of City Gas Distribution (CGD) network development. Such a network comprises pipelines and allied facilities that serve households, commercial establishments, and industrial units. Entities authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) develop it. PNGRB has authorised entities in 309 Geographical Areas (GAs). Together, these areas span the entire mainland of the country. As of 18 August 2026, there were 1.74 crore domestic PNG connections across the country.
To expand PNG coverage further, the Incentive Scheme for Promotion of Domestic PNG Connections was launched on 18 August 2026. The Scheme came into effect from 1 September 2026.
About the Scheme
The Incentive Scheme for Promotion of Domestic PNG Connections seeks to accelerate the growth of active domestic PNG connections. It aims to enable households to access clean, safe and affordable cooking gas through piped supply. The Scheme provides incentives to CGD entities for converting unbilled connections into active, billed connections. It also incentivises the expansion of the PNG network into new areas. The Scheme will run in two tranches spread over six months.
A minimum number of connections has been fixed for every Geographical Area under the scheme. During the performance period, eligible CGD entities must add billed domestic connections beyond this threshold. For each such incremental connection, the entity earns an additional allocation of 200 Standard Cubic Metres (SCM) of gas. This gas is domestically produced Administered Price Mechanism (APM) gas, which is priced lower.
The additional allocation will replace the costlier Liquefied Natural Gas (LNG). CGD entities presently buy this LNG for their Compressed Natural Gas (Transport) segment. Substituting it with cheaper APM gas brings down their overall gas sourcing cost.
The payback period on capital spent for a domestic connection is therefore expected to shrink. It is expected to fall from about ten years to nearly three years. Companies therefore gain a strong commercial reason to connect homes faster.
Benefits of PNG for Households
PNG offers several important benefits for households, including ease of use, cost savings, and uninterrupted availability. The following are the key advantages of PNG for household users:
Initiatives for PNG Expansion
PNG expansion is being supported through measures for faster approvals, rationalised taxes, and streamlined infrastructure development. Digital platforms and awareness initiatives are making household transitions to PNG simpler, quicker, and more accessible:
Towards Cleaner, Connected Homes
Clean cooking fuel at home adds to the comfort, health and dignity of every household. Now in effect, the new Scheme aligns the commercial interests of gas companies with this national goal. As pipelines reach more areas and more kitchens, dependence on cylinders steadily declines. Piped gas is thus set to become a natural part of everyday living in India.
References
Ministry of Petroleum and Natural Gas:
https://www.pib.gov.in/PressReleaseDetail.aspx?PRID2301012®3&lang1
https://www.pib.gov.in/PressReleasePage.aspx?PRID2252308&lang1
https://sansad.in/getFile/lsapps/loksabhaquestions/annex/188/AU1952_UgNJ5G.pdf?sourcelsapps
Incentive Scheme for Promotion of Domestic PNG Connections
Disclaimer: Curated by HT Syndication.
