Govt clears PNG incentive scheme to speed up household gas connections

India currently has 1.74 crore domestic PNG connections, with the government aiming to bring more households onto piped gas. The incentives could reduce the payback period for PNG connections from around 10 years to nearly three years.LPG, CNG, PNG prices on August 12: Check rates across major citiesThe Centre has approved an incentive scheme to accelerate the expansion of domestic piped natural gas (PNG) connections, with the aim of making clean, safe and affordable cooking gas available to more households across the country. The Incentive Scheme for Promotion of Domestic PNG Connections will come into effect from September 1, 2026. It will incentivise City Gas Distribution (CGD) companies to convert inactive or unbilled PNG connections into working connections and expand gas networks to new areas.HOW THE SCHEME WILL WORKIndia currently has around 1.74 crore domestic PNG connections. Under the new scheme, eligible CGD entities will receive an additional 200 SCM of domestically produced, lower-priced APM gas for every incremental billed domestic PNG connection achieved above a prescribed threshold for the respective geographical area.The scheme will be implemented in two six-month tranches. The additional domestic gas allocation will replace costlier LNG currently procured by CGD companies for their CNG transport segment, helping reduce their overall gas sourcing costs.According to the government, the resulting savings could reduce the payback period for investments in domestic PNG connections from around 10 years to nearly three years, providing companies with a stronger financial incentive to expand household connectivity. WHY PNG COULD BENEFIT HOUSEHOLDSPNG offers several advantages over LPG cylinders and conventional cooking fuels. It is supplied through underground pipelines at low pressure, eliminating the need to store and handle cylinders. As PNG is lighter than air, it disperses quickly in case of a leak.Households also do not need to book or replace cylinders, with gas supplied continuously and bills based on actual metered consumption. The government said PNG is also a cleaner-burning fuel that produces fewer pollutants and can contribute to improved indoor air quality and lower carbon emissions.GOVERNMENT'S PUSH FOR PNG EXPANSIONThe scheme is part of a broader push to expand household access to PNG. Other measures include streamlined regulatory clearances and standardised Right-of-Way charges, efforts to rationalise VAT on natural gas to 5%, and National PNG Drive 2.0 to encourage households and housing societies to shift from LPG to piped gas.A unified digital portal for applying for and tracking new PNG connections is also being developed, government said.- EndsPublished By: Priyanka KumariPublished On: Aug 18, 2026 22:02 IST