The government has introduced a new initiative aimed at making piped natural gas (PNG) available to more households across India. The scheme, effective from September 1, 2026, is designed to encourage faster expansion of active domestic PNG connections and make clean cooking fuel more accessible.

The government says India currently has around 1.74 crore domestic PNG connections. Under the new initiative, gas distribution companies will receive incentives for increasing the number of active billed household connections.

What Is the New PNG Scheme?

The Incentive Scheme for Promotion of Domestic PNG Connections has been introduced to encourage City Gas Distribution (CGD) companies to connect more households to piped natural gas.

The focus is not on directly giving cash to households. Instead, the government is providing an incentive to eligible gas distribution companies so they have a stronger financial reason to expand PNG networks and activate existing connections.

The scheme is being implemented in two six-month tranches.

How Can This Benefit Households?

PNG is supplied directly to a kitchen through a pipeline, so households do not need to wait for a cylinder delivery once the connection is active.

A continuous pipeline supply can be particularly convenient for households in high-rise buildings, apartments and densely populated urban areas, where storing and replacing LPG cylinders can sometimes be inconvenient.

The government is also aiming to make the transition to PNG easier by expanding networks into new areas.

What Is the Government Giving Gas Companies?

Under the scheme, eligible City Gas Distribution companies 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 prescribed threshold for the relevant geographical area.

The additional gas allocation can replace more expensive LNG that companies currently procure for their CNG operations. This is expected to reduce their overall gas procurement costs.

According to the government, these savings could reduce the payback period for investments in domestic PNG connections from around 10 years to approximately three years. This is intended to encourage companies to build networks and activate more household connections.

Will Every LPG User Automatically Get PNG?

No. The scheme does not mean that every LPG consumer will automatically receive a PNG connection.

PNG availability depends on whether a City Gas Distribution network exists in the consumer's area. Households in locations where pipelines have not yet been developed may have to wait until the network reaches their locality.

The government is also developing a unified PNG registration portal intended to make applying for and tracking new connections easier.

LPG Cylinder Users May Get Another Option

The government is simultaneously encouraging the expansion of PNG as an alternative household cooking fuel.

As part of the broader effort, the government has mentioned National PNG Drive 2.0, which includes awareness campaigns, household outreach, LPG-cylinder surrender facilities and efforts to convert LPG-using housing societies to PNG.

This means households with access to a PNG network may increasingly have another option besides depending entirely on LPG cylinders.

Government Wants PNG to Become More Accessible

The government is also working on measures intended to speed up the development of PNG infrastructure. These include streamlined regulatory clearances and standardised Right-of-Way charges for gas distribution infrastructure.

States have also been encouraged to consider reducing VAT on natural gas to 5%, which could help make PNG more affordable where implemented.

What Should Consumers Do Now?

If PNG is already available in your locality, you can check with the authorised City Gas Distribution company serving your area about new domestic PNG connections, registration and installation charges.

If PNG is not yet available, there may be nothing you need to do immediately. The key benefit of the new scheme is that it is designed to give gas distribution companies a stronger incentive to expand networks and activate more household connections.

So, while the scheme does not provide a direct cash benefit to LPG consumers, it could make piped cooking gas available to more Indian households in the coming months.