The Indian government has launched the Incentive Scheme for Promotion of Domestic PNG Connections to accelerate the adoption of piped natural gas (PNG) across households. As of 18 August 2026, there were 1.74 crore domestic PNG connections nationwide, with the scheme aiming to expand this further. The initiative, effective from 1 September 2026, offers incentives to City Gas Distribution (CGD) entities for converting unbilled connections into active, billed ones and for expanding the PNG network into new areas.
The scheme operates in two tranches over six months, with a minimum connection threshold set for each Geographical Area. For every incremental billed connection beyond this threshold, CGD entities receive an additional allocation of 200 Standard Cubic Metres (SCM) of cheaper domestically produced Administered Price Mechanism (APM) gas. This substitution of costlier Liquefied Natural Gas (LNG) is expected to reduce the payback period for capital spent on domestic connections from about ten years to nearly three years, providing a strong commercial incentive for faster adoption.
PNG offers numerous benefits for households, including safety, convenience, cost savings, and environmental advantages. The government is supporting PNG expansion through streamlined regulatory approvals, reduced Value Added Tax (VAT), and digital platforms like the Unified PNG registration portal. The National PNG Drive 2.0, held from 1 January to 30 June 2026, also contributed to accelerating domestic PNG connections.
With the new scheme aligning commercial interests with national goals, piped gas is poised to become a standard part of everyday living in India, reducing dependence on cylinders and promoting cleaner cooking fuel.