Centre launches new incentive scheme to expand PNG connections across India; Details Inside
Piped Gas Push: New Scheme Aims to Bring PNG to More Indian Homes, Cut Costs for Gas Firms
Babushahi Bureau/PIB
New Delhi, September 13, 2026: Getting a piped natural gas (PNG) connection could become easier for households in more parts of India as the Centre has introduced a new incentive scheme aimed at speeding up the expansion of domestic PNG networks.
The Incentive Scheme for Promotion of Domestic PNG Connections, which came into effect on September 1, is designed to encourage City Gas Distribution (CGD) companies to activate existing connections and extend pipelines to new residential areas.
India had 1.74 crore domestic PNG connections as of August 18, 2026, according to the Petroleum and Natural Gas Regulatory Board (PNGRB). The CGD network currently covers 309 geographical areas across the mainland.
How the new incentive works
Under the scheme, CGD companies will receive an additional allocation of 200 Standard Cubic Metres (SCM) of domestically produced APM gas for every eligible incremental domestic connection added beyond a minimum target fixed for each geographical area.
The additional allocation is intended to replace more expensive imported Liquefied Natural Gas (LNG) currently used by CGD entities, reducing their overall gas procurement costs.
According to the government, the move could significantly improve the economics of laying household PNG connections. The expected payback period on the capital invested in a domestic connection could fall from around 10 years to nearly three years, giving companies a stronger incentive to expand household connections.
What PNG means for households
For consumers, PNG works differently from LPG cylinders. Gas is supplied through an underground pipeline and is charged according to metered consumption.
Households do not need to book, store or replace cylinders, while the piped supply remains available continuously.
The government also says PNG generally costs less than LPG on a per-unit energy basis and produces fewer pollutants when burned, making it a cleaner cooking fuel.
Pipeline supply can also be particularly convenient for residents of high-rise buildings and densely populated urban areas, where storing and transporting LPG cylinders can be more cumbersome.
What is being done to expand PNG networks?
The government has announced several measures alongside the incentive scheme, including faster regulatory approvals for pipeline projects and uniform charges for the Right of Way (RoW) required to lay pipelines.
States have also been encouraged to reduce VAT on natural gas to 5 per cent. Several states have already adopted the lower rate. The government conducted National PNG Drive 2.0 from January 1 to June 30, 2026, to accelerate domestic PNG connections across geographical areas.
A unified digital PNG registration portal is also being developed to allow consumers to apply for and track new connections through a single platform.
The incentive scheme will be implemented in two tranches over six months, with the government expecting the measures to accelerate the shift from cylinder-based cooking fuel to piped gas in areas covered by the CGD network.