The government has introduced a new incentive scheme aimed at expanding domestic Piped Natural Gas (PNG) connections across India. The initiative, effective from September 1, 2026, is designed to encourage gas distribution companies to make more PNG connections operational and expand their networks to new residential areas.
With 1.74 crore domestic PNG connections already present across the country, the government expects the new initiative to accelerate the shift towards piped cooking gas.
What is the new PNG scheme?
The Incentive Scheme for Promotion of Domestic PNG Connections is aimed primarily at City Gas Distribution companies. Instead of providing a direct cash benefit to individual households, the scheme gives eligible gas distribution companies incentives for increasing the number of active domestic PNG connections.
The objective is to make it easier for more households to access piped natural gas without depending on traditional cylinder-based cooking fuel.
How can PNG benefit households?
PNG is supplied directly to homes through pipelines, eliminating the need to regularly book, transport and store LPG cylinders.
Households using PNG are billed according to their metered consumption, similar to other utility services. The government also highlights safety, convenience and cleaner combustion among the potential benefits of PNG.
Another major advantage is continuous supply. Once a household has an operational connection, there is no need to wait for a cylinder delivery when the gas runs out.
Will LPG users automatically get PNG?
No. The new scheme does not automatically convert every LPG household into a PNG connection.
PNG availability depends on whether a City Gas Distribution network has been developed in the particular area. Households in areas covered by the network can apply for a domestic PNG connection through the relevant gas distribution company.
The government is also working towards a unified digital registration portal to simplify the process of applying for and tracking new PNG connections.
What is the government doing to expand PNG?
The government says several measures are being taken alongside the new incentive scheme. These include efforts to streamline regulatory approvals, standardise certain Right-of-Way charges and encourage states to rationalise VAT on natural gas.
A nationwide PNG Drive 2.0 is also aimed at increasing awareness and facilitating the conversion of LPG-using housing societies and households where PNG infrastructure is available.
How does the incentive work?
Under the scheme, eligible City Gas Distribution entities can receive an additional allocation of 200 SCM of domestically produced, lower-priced APM gas for every incremental billed domestic PNG connection achieved above the specified threshold for their geographical area.
The government expects the resulting savings to provide companies with a stronger financial incentive to expand household PNG networks and activate more connections.
What should households do?
If PNG has recently become available in your locality, check with the local City Gas Distribution company about connection availability, installation charges, documentation and the application process.
Existing LPG users should also compare the applicable PNG connection and usage costs in their area before deciding whether to switch.
The new initiative is primarily a supply-side measure, but its success could gradually make piped cooking gas available to more households across cities and residential areas. For consumers, the key change to watch will be the expansion of PNG networks and easier access to new connections.
