India Accelerates Domestic Piped Natural Gas Expansion with New Incentive Scheme

The Indian government has launched an incentive scheme to accelerate the expansion of domestic piped natural gas (PNG) connections across households.

The initiative aims to bring down the payback period for companies investing in new connections from around 10 years to nearly three years, according to the government.

The Incentive Scheme for Promotion of Domestic PNG Connections was launched on August 18, 2026, and came into effect from September 1. It seeks to increase the number of active domestic PNG connections by incentivising City Gas Distribution (CGD) entities to convert unbilled connections into active, billed connections and expand PNG networks into new areas.

Under the scheme, a minimum threshold of domestic connections has been fixed for every Geographical Area. Eligible CGD entities that add billed domestic connections above the prescribed threshold during the performance period will receive an additional allocation of 200 Standard Cubic Metres (SCM) of domestically produced APM gas.