Centre approves incentive scheme to expand household PNG connections
The Centre on 18 August 2026 approved an Incentive Scheme for Promotion of Domestic PNG Connections, effective 1 September 2026, giving city gas firms extra low-priced APM gas for each new billed household connection.
Summary
The Government of India on 18 August 2026 approved the Incentive Scheme for Promotion of Domestic PNG Connections, effective from 1 September 2026, to speed up piped cooking gas connections for households. India currently has 1.74 crore domestic PNG connections. Under the scheme, eligible city gas distribution (CGD) entities get an additional 200 standard cubic metres of domestically produced, lower-priced APM gas for every incremental billed domestic PNG connection above a threshold set for each geographical area. The scheme runs in two tranches over six months, and the cheaper gas replaces costlier LNG used for the CNG (transport) segment, cutting the payback period on household connections from about 10 years to about 3 years.
Key facts
- Effective from
- 1 September 2026
- Existing connections
- 1.74 crore domestic PNG
- Incentive
- Extra 200 SCM of APM gas per incremental billed connection
- Duration
- Two tranches over six months
- Payback period
- ~10 years cut to ~3 years
- Beneficiaries
- City gas distribution (CGD) entities
Practice MCQs 3 questions
From when is the Incentive Scheme for Promotion of Domestic PNG Connections effective?
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Correct answer: C — 1 September 2026
The scheme, approved on 18 August 2026, is effective from 1 September 2026.
Under the Domestic PNG incentive scheme, how much additional APM gas does a CGD entity get for every incremental billed domestic connection?
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Correct answer: B — 200 SCM
Eligible CGD entities get an additional 200 SCM of domestically produced, lower-priced APM gas per incremental billed connection above the threshold.
Consider the following statements about the Domestic PNG incentive scheme: 1. India currently has about 1.74 crore domestic PNG connections. 2. The scheme runs in four tranches spread over two years. Which of the above is/are correct?
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Correct answer: A — 1 only
Only statement 1 is correct. The scheme runs in two tranches spanning six months.