Loading…
The Incentive Scheme for Promotion of Domestic PNG Connections, launched on 18 August 2026 and in effect from 1 September 2026, rewards city gas companies for adding active, billed household connections.
For every billed domestic connection above a fixed minimum per Geographical Area, a CGD entity gets an extra 200 SCM of low-priced domestic APM gas, replacing costlier LNG it buys for its CNG (Transport) segment.
The payback period on a household connection is expected to fall from about ten years to nearly three; the scheme runs in two tranches over six months.
India had 1.74 crore domestic PNG connections as of 18 August 2026, with PNGRB-authorised entities in 309 Geographical Areas covering the entire mainland.
Supporting steps: an Accelerated Approval Framework with uniform Right-of-Way charges, a push for 5% VAT on natural gas, National PNG Drive 2.0 and a unified registration portal.
Turn unbilled connections into active billed ones and push networks into new areas.
Key: Supply-side incentive paid to CGD entities in gas (200 SCM APM gas per extra connection), not cash to households.
Faster pipeline permissions.
Key: Issued under the Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026; uniform Right-of-Way charges and time-bound processing.
Cheaper piped gas for consumers.
Key: States encouraged to cut VAT on natural gas to 5%; several have done so.
Accelerate domestic PNG (DPNG) connections.
Key: Held 1 January - 30 June 2026 across Geographical Areas.
Single window to apply for and track connections.
Key: Under development.
Clean cooking fuel (LPG) for poor households.
Key: Launched 1 May 2016 at Ballia, Uttar Pradesh, with an initial target of 5 crore connections; Ujjwala 2.0 followed in 2021. PMUY is cylinder-based LPG; the 2026 scheme is pipeline-based PNG.
Gas from nominated domestic fields of ONGC and Oil India, priced by government formula rather than the market. Since 2023 (Kirit Parikh Committee) it is 10% of the Indian crude basket price, with a US$4 floor and US$6.5/mmBtu ceiling.
Simple Analogy: A ration-shop price for gas, reserved for priority users.
| Aspect | PNG | LPG | CNG | LNG |
|---|---|---|---|---|
| Main component | Methane (natural gas) | Propane and butane | Methane | Methane |
| Form | Low-pressure gas in pipelines | Liquefied under pressure in cylinders | Compressed to 200-250 bar, under 1% of its volume | Cooled to about -162 °C, volume cut about 600 times |
| Main use | Household and commercial cooking | Household cooking (PMUY) | Vehicles | Import and long-distance shipping |
| If leaked | Lighter than air, disperses upward | Heavier than air, settles low | Lighter than air | Vaporises to natural gas |
Downstream regulator: authorises CGD entities for Geographical Areas through bidding rounds, fixes network tariffs, ensures open access and competitive gas markets. Appeals against its orders lie with the Appellate Tribunal for Electricity (APTEL), under Section 30 of the PNGRB Act, 2006.
Nodal ministry for the scheme, gas allocation policy and the National Gas Grid.
Pipelines and allied facilities supplying PNG to homes, businesses and industry, plus CNG to vehicles. PNGRB's 12th bidding round covered the North-East states and J&K-Ladakh, taking authorisation towards full national coverage.
Trunk pipelines that feed CGD networks: about 25,429 km operational and 10,459 km under construction as of June 2025.
India aims to raise gas from about 6% to 15% of its primary energy mix by 2030; household PNG is one demand lever.
Swapping LNG for domestic APM gas in the CNG segment is what funds the incentive, so the scheme also trims import costs.
GS Paper 3 > Economy > Infrastructure: Energy
General Awareness > Government Schemes and Bodies
General Awareness > Economy > Regulators
Consider the following statements: 1. Petroleum and Natural Gas Regulatory Board (PNGRB) is the first regulatory body set up by the Government of India. 2. One of the tasks of PNGRB is to ensure competitive markets for gas. 3. Appeals against the decisions of PNGRB go before the Appellate Tribunals for Electricity. Which of the statements given above are correct?
Answer: 2 and 3 only
In which year was the "Pradhan Mantri Ujjwala Yojana" (PMUY) launched?
Answer: 2016
The licensed territory PNGRB awards to one CGD entity through a bidding round; 309 GAs now cover the mainland.
Standard Cubic Metre - the volume unit for gas; the incentive is 200 SCM per extra connection.
Government-priced gas from nominated ONGC and Oil India fields, cheaper than LNG.
Domestic Piped Natural Gas - household pipeline connections.