Union Government has approved an incentive scheme for expansion of domestic piped natural gas (D-PNG) across India.
The scheme aims to encourage city gas distribution (CGD) companies to convert unbilled PNG connections into active, billed connections while expanding their household networks into new areas.
Under the scheme, eligible CGD entities will receive an additional allocation of 200 standard cubic metres of domestically produced, lower-priced APM gas for every incremental billed domestic PNG connection achieved above the threshold level fixed for their respective geographical areas. The additional gas allocation would substitute costlier Liquefied Natural Gas that CGD entities currently procure for their Compressed Natural Gas (Transport) segment, to lower their overall gas-sourcing costs.
The scheme will be implemented in two tranches over a period of six months. India currently has around 17.4 million domestic PNG connections.