Government approves Incentive Scheme to promote domestic PNG connections from 1 September 2026
Ministry of Petroleum and Natural Gas announced an incentive scheme effective from 1 September 2026 to expand domestic PNG household connections.
GS3PIBGS3Natural Gas & Petroleum Distribution policyDomestic PNG connections incentive schemeCity Gas Distribution (CGD)
What happened: MoPNG approves an incentive to push domestic PNG connections
The Government of India approved an Incentive Scheme for Promotion of Domestic PNG Connections, under the Ministry of Petroleum and Natural Gas, with an effective start date of 1 September 2026. The stated goal is to expand active Piped Natural Gas (PNG) household connections across India so more families get access to piped natural gas for cooking.
The scheme’s core mechanism is an incentive given to eligible City Gas Distribution (CGD) companies based on incremental, billed Domestic PNG connections achieved during a defined performance period.
How the scheme works
Under the scheme, eligible CGD entities receive an additional gas allocation of 200 SCM of domestically-produced, lower-priced APM gas (APM = Administered Price Mechanism) for every incremental billed Domestic PNG connection achieved. The incentive applies only after crossing a threshold level of billed connections for the relevant Geographical Area (GA), and it is calculated over and above that threshold level.
Key implementation features mentioned in the announcement are:
