Union Government Outlines Incentive Scheme to Accelerate Piped Natural Gas Expansion
The Union Ministry of Petroleum and Natural Gas released details regarding the implementation of the Incentive Scheme for Promotion of Domestic Piped Natural Gas (PNG) Connections across India. Designed to accelerate household access to clean and affordable cooking gas, the scheme incentivizes authorized City Gas Distribution (CGD) companies operating across 309 Geographical Areas nationwide.
Under the framework, CGD entities that expand active, billed domestic PNG connections beyond specified threshold targets will receive an additional allocation of 200 Standard Cubic Metres (SCM) of domestically produced Administered Price Mechanism (APM) gas per incremental connection. This lower-priced gas allocation will replace the costlier imported Liquefied Natural Gas (LNG) currently utilized by CGD entities, thereby significantly improving the payback period on capital expenditure required for last-mile pipeline infrastructure.
Currently, India has approximately 1.74 crore domestic PNG connections. Officials emphasized that the financial push aims to bridge the gap between installed pipeline infrastructure and actual active usage in homes. The transition to piped gas provides urban and semi-urban households with an uninterrupted, safer, and cost-effective cooking fuel alternative to traditional LPG cylinders, reducing reliance on delivery logistics and lowering carbon emissions.
