PNG push: Govt to offer distributors cheaper domestic gas for every new connection
Approved by the government and effective from September 1, the benefit will apply to new domestic PNG connections added above a specified threshold for each geographical area. India has around 17.4 million domestic PNG connections at present.
The Indian government is set to offer city gas distributors cheaper domestic natural gas for every new piped natural gas (PNG) connection, with the aim of boosting the adoption of PNG and encouraging households to shift away from LPG cylinders. The incentive scheme, which will be implemented in two phases of six months each starting September 1, will provide 200 standard cubic metres (SCM) of domestic natural gas for each new PNG connection, in addition to existing offerings.
This move comes as part of the government's broader initiative to expand household access to PNG, which it considers a cleaner, safer, and more convenient cooking option. The incentive is expected to improve the economics of household PNG connections, with the government estimating that the payback period for distributors' capital expenditure could decrease from 10 years to around three years.
The scheme is designed to activate existing connections that are currently unbilled or unused and to extend PNG networks to areas that are not yet covered. City gas distribution companies will have the flexibility to replace part of the more expensive liquefied natural gas (LNG) they currently purchase for their CNG transport operations, thereby reducing their overall gas procurement costs.
The government expects these savings to make the switch from LPG cylinders to piped natural gas a more financially attractive option for households and businesses. A national PNG drive is underway, with awareness programs, campaigns to surrender domestic LPG connections, and the development of a digital platform to help consumers apply for and track PNG connections.
The government aims to lower the VAT on natural gas to 5% and ease regulatory constraints affecting gas infrastructure, further facilitating the transition to PNG.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
