Scheme

Incentive Scheme for Promotion of Domestic PNG Connections

GS3 EnergyGS2 Government policiesPrelims and Mains

In the news since 18 August 2026 · last on 13 September 2026

Why in news
The Incentive Scheme for Promotion of Domestic PNG Connections was launched on 18 August 2026 and took effect on 1 September 2026; a PIB explainer on it was posted on 13 September 2026.
What it is
It is a Ministry of Petroleum and Natural Gas scheme that rewards City Gas Distribution companies for adding active, billed household piped gas connections. The reward is extra cheap domestic gas, which lowers the firms' sourcing costs and so the cost of connecting homes.
Who gets the incentive
CGD entities get incentives for converting unbilled connections into active billed ones and for expanding the network into new areas.
Reward per connection
Each billed domestic connection added beyond the fixed threshold earns 200 SCM of additional APM gas.
Duration
The scheme runs in two tranches over six months.
Coverage
PNGRB has authorised entities in 309 Geographical Areas, which together span the whole mainland.
Payback period
The payback on capital for a domestic connection is expected to fall from about ten years to nearly three years.
Regulator
PNGRB is the statutory regulator for downstream natural gas and petroleum products, set up under the PNGRB Act, 2006.
Reward
Eligible CGD entities get an extra 200 SCM of APM gas for each incremental billed domestic PNG connection above a threshold set for each Geographical Area.
Who gets it
The incentive goes to City Gas Distribution companies, not to households directly.
How it cuts costs
The extra APM gas replaces costlier LNG that CGD firms buy for their CNG (Transport) segment.
Current base
India has 1.74 crore domestic PNG connections at present.

Don’t confuse with APM gas vs LNG: APM gas is domestic gas sold at a government-administered price. LNG is imported, costlier gas.

Don’t confuse with PNG vs CNG: PNG is piped gas for cooking at homes. CNG is compressed gas used as a transport fuel.

Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.

Test yourself

Worth revising until Prelims 2028: most news questions come within two years of the event.

Each time it was in the news

  1. 13 September 2026

    The Incentive Scheme for Promotion of Domestic PNG Connections was launched on 18 August 2026 and took effect on 1 September 2026; a PIB explainer on it was posted on 13 September 2026.

  2. 18 August 2026

    On 18 August 2026 the Government approved an Incentive Scheme for Promotion of Domestic PNG Connections, effective 1 September 2026. It rewards City Gas Distribution firms for adding billed household piped gas connections.