The government has approved an incentive scheme to promote domestic Piped Natural Gas (PNG) connections—a major initiative aimed at delivering clean, safe, and affordable piped cooking gas to households. This scheme will come into effect on September 1, 2026. It is designed to accelerate the expansion of active PNG connections, enabling more families to start using piped natural gas in their kitchens as soon as possible.
How it benefits the common public
Currently, there are 1.74 crore domestic PNG connections across the country. This new scheme directly incentivizes City Gas Distribution (CGD) companies to actively convert ‘unbilled’ (inactive) connections into functional gas connections and to expand the PNG network into new areas.
Benefits of PNG for domestic use
Notably, piped natural gas offers households a safer, cleaner, and more convenient alternative to LPG cylinders and traditional fuels:
- Safety: PNG is supplied at low pressure through underground pipelines, eliminating risks associated with cylinder storage and handling; furthermore, since the gas is lighter than air, it dissipates quickly in the event of a leak, enhancing safety.
- Convenience: There is no need to book, store, or replace cylinders—gas is available directly at home round-the-clock, and billing is based on actual metered consumption, similar to electricity or water services.
- Affordability: Households pay only for the gas they actually consume; in terms of unit price based on energy content, PNG is generally cheaper than LPG, leading to reduced monthly fuel expenses over time.
- Eco-friendly: It is a clean-burning fuel that produces fewer pollutants compared to traditional cooking fuels, resulting in better indoor air quality and lower carbon emissions. Continuous Supply: Continuous supply via pipelines eliminates reliance on cylinder deliveries, which is particularly beneficial for families living in high-rise buildings and densely populated urban colonies.
Government’s Sustained Initiatives for PNG Expansion
This scheme builds upon several measures the government has taken in recent months to accelerate PNG expansion and facilitate the transition to clean cooking fuel for households:
Simplification of Regulatory Approvals: An ‘Accelerated Approval Framework’ and standardized ‘Right-of-Way’ charges have been introduced under the Natural Gas and Petroleum Distribution Order, 2026. These measures ensure priority processing of applications for PNG infrastructure, facilitate decision-making within defined timelines, and standardize associated charges.
Rationalization of Value Added Tax (VAT): States are being encouraged to reduce VAT on natural gas to 5% to make domestic PNG more affordable; several states have already implemented such reductions.
National PNG Drive 2.0: A nationwide campaign comprising a portal for the surrender of LPG cylinders, household notifications, awareness camps, and the conversion of LPG-using residential societies to PNG, aimed at encouraging more families to adopt piped gas.
Unified PNG Registration Portal: A single-window digital platform is under development to simplify and expedite the application and tracking process for new PNG connections.
The APM/NAPM Incentive Scheme for Promotion of Domestic PNG Connections is a significant initiative in this direction; it will further strengthen the government’s ongoing efforts to expand access to clean, safe, and affordable piped cooking gas for households. Scheme Structure
Under the scheme, eligible City Gas Distribution (CGD) entities will be allocated additional domestic-source, affordable (APM) gas—at the rate of 200 SCM (Standard Cubic Meters) per connection—for every additional billed domestic PNG connection achieved above a specified threshold level for a designated Geographical Area (GA) during the performance period.
The scheme will be implemented over a six-month period. This additional gas allocation will replace the expensive Liquefied Natural Gas (LNG) currently purchased by CGD entities for their Compressed Natural Gas (CNG) (transport) segment, thereby reducing their overall gas sourcing costs.
These cost savings will reduce the payback period for capital expenditure incurred on domestic PNG connections from approximately 10 years to about 3 years, providing CGD entities with a strong financial incentive to rapidly expand domestic PNG connectivity. Consequently, the benefits of clean, safe, and affordable piped cooking gas can be extended to more Indian households in the coming months.
