Incentive Scheme for Promotion of Domestic PNG Connections

The Incentive Scheme for Promotion of Domestic PNG Connections was launched on 18 August 2026 and came into effect on 1 September 2026 to accelerate active domestic Piped Natural Gas (PNG) connections across India's City Gas Distribution (CGD) networks. Regulated by the Petroleum and Natural Gas Regulatory Board (PNGRB), CGD entities spanning 309 Geographical Areas had 1.74 crore domestic PNG connections as of 18 August 2026. The scheme incentivizes entities to convert unbilled connections and expand networks by awarding an additional allocation of 200 Standard Cubic Metres of cheaper domestically produced Administered Price Mechanism (APM) gas for each incremental billed connection added beyond a fixed threshold. This APM gas replaces costlier LNG used in the transport segment, reducing gas sourcing costs and shortening the capital payback period from about ten years to three years. Supplementary initiatives include streamlined regulatory approvals under the Natural Gas and Petroleum Products Distribution Order, 2026, lower VAT rates, National PNG Drive 2.0, and a unified registration portal.