The Ministry of Petroleum and Natural Gas said that the scheme is designed to fast-track the expansion of active PNG connections, ensuring that more families can start using piped natural gas in their kitchens at the earliest.

Currently, there are 1.74 crore Domestic PNG connections across the country. The Ministry added that the new Scheme directly incentivises the City Gas Distribution (CGD) companies to actively convert unbilled connections into working gas connections and expand the PNG network to new areas. It said that Piped Natural Gas offers households a safer, cleaner and more convenient alternative to LPG cylinders and traditional cooking fuels.

The Scheme will be implemented over two Tranches spanning six months. The additional gas allocation will substitute the costlier Liquefied Natural Gas that CGD entities currently procure for their Compressed Natural Gas (Transport) segment, which will lower their overall gas-sourcing costs. Under the Scheme, eligible CGD entities will be allocated an additional 200 Standard Cubic Meters of domestically-produced, lower-priced gas for every incremental billed Domestic PNG connection achieved during the performance period.