The Ministry of Petroleum and Natural Gas has announced an Incentive Scheme for Promotion of Domestic PNG Connections to expand access to piped cooking gas across India’s households. The scheme launched on 18 August 2026 and became effective from 1 September 2026. It targets gas distribution companies to increase the number of active household connections and extend pipeline networks to new areas.
How the Scheme Works
The scheme runs over six months in two phases. Gas distribution companies that convert inactive connections into active, billed connections and expand their networks into new areas receive incentives in the form of additional gas allocation.
For each new domestic connection added beyond a minimum threshold set for their area, companies receive an additional allocation of 200 Standard Cubic Metres of Administered Price Mechanism (APM) gas. This is domestically produced natural gas priced lower than Liquefied Natural Gas (LNG), which these companies currently purchase for their transport segment. By substituting cheaper APM gas for costly LNG, companies reduce their overall gas sourcing expenses.
This cost reduction significantly improves returns on capital investment. The payback period for building a household connection is expected to drop from approximately ten years to around three years. This commercial advantage encourages gas companies to accelerate household connections.
As of mid-August 2026, India had 1.74 crore domestic PNG connections. The Petroleum and Natural Gas Regulatory Board has authorised distribution entities across 309 geographical areas spanning mainland India.
What This Means for You
If you live in an area covered by a City Gas Distribution network, this scheme makes piped cooking gas connections more likely to reach your home sooner. Once connected, you avoid the inconvenience of buying, storing and changing gas cylinders, pay only for gas you actually use, and benefit from cleaner indoor air and lower cooking costs compared to LPG. Piped gas also provides uninterrupted supply without relying on delivery logistics, which is especially valuable in crowded urban areas and high-rise buildings.