India's New Incentive Scheme Boosts Domestic PNG Connections

The Indian government has launched an incentive scheme to accelerate the expansion of domestic piped natural gas (PNG) connections. The initiative aims to reduce the payback period for companies investing in new connections from around 10 years to nearly three years.

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

The government expects that CGD companies will benefit from lower sourcing costs due to the substitution of liquefied natural gas (LNG) with domestically produced APM gas. This is expected to improve the commercial viability of domestic PNG connections and provide a stronger incentive for companies to expand household coverage.