India Boosts Domestic PNG Connections with New Incentive Scheme

The Indian government has launched an incentive scheme to boost domestic Piped Natural Gas (PNG) connections, aiming to increase active and billed connections while encouraging companies to expand their networks.

Under the Incentive Scheme for Promotion of Domestic PNG Connections, City Gas Distribution entities will receive additional access to lower-priced domestically produced Administered Price Mechanism (APM) gas for every incremental household connection beyond a minimum threshold.

The scheme is expected to reduce the payback period on capital invested in a domestic PNG connection from around 10 years to nearly three years, creating a stronger commercial incentive for companies to connect more households.