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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.
