Incentive Scheme for Promotion of Domestic PNG Connections |ForumIAS

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News: The government has approved an incentive scheme to accelerate domestic Piped Natural Gas (PNG) connections across the country.

About Incentive Scheme for Promotion of Domestic PNG Connections

Incentive Scheme for Promotion of Domestic PNG Connections is an incentive programme for City Gas Distribution (CGD) companies to expand household Piped Natural Gas (PNG) connections.
Nodal ministry: Ministry of Petroleum and Natural Gas
Aim: It aims to encourage City Gas Distribution (CGD) companies to convert unbilled connections into working connections and expand Piped Natural Gas (PNG) networks to new areas.
Implemented over: It will be implemented in two tranches spanning six months.
Key Features:
- Existing connectivity: India currently has around 1.74 crore domestic PNG connections.
- Incentive mechanism: Eligible CGD entities will receive 200 Standard Cubic Meters (SCM) of lower-priced, domestically produced gas.
  - This will be provided for each additional billed domestic PNG connection above the prescribed threshold for the respective geographical area.
- Cost reduction: The additional domestic gas will replace costlier Liquefied Natural Gas (LNG) used by CGD entities for their Compressed Natural Gas (CNG) transport segment.
  - This will reduce their overall gas-sourcing cost.