New Government Scheme From September 1: Government Launches Major PNG Drive to Help More Households Get Piped Gas

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Wed Sep 09 16:14:14 IST 2026
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The Government of India has introduced a new incentive scheme aimed at expanding domestic piped natural gas (PNG) connections across the country. The initiative, effective from September 1, 2026, is designed to encourage the expansion of PNG networks and help more households shift to piped cooking gas.

The government says the scheme will incentivise City Gas Distribution (CGD) companies to make inactive connections operational and extend PNG infrastructure to new areas. Currently, around 1.74 crore domestic PNG connections

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are available across India.

What is the new PNG scheme?

The Incentive Scheme for Promotion of Domestic PNG Connections has been introduced to accelerate the adoption of piped natural gas among households.

Unlike schemes where the government directly transfers money to individual beneficiaries, this initiative primarily provides incentives to gas distribution companies. The objective is to encourage them to activate existing unused connections and expand the PNG network to more homes.

The scheme came into effect on September 1, 2026

.

How can ordinary households benefit?

For consumers, the biggest potential advantage is easier access to a functioning PNG connection.

Piped natural gas is supplied directly to the kitchen through a pipeline, meaning households do not have to depend on the delivery of LPG cylinders. This can be particularly convenient for people living in apartments, high-rise buildings and densely populated urban areas.

The government is also encouraging states to rationalise VAT on natural gas, with a target of bringing it down to 5%. Several states have already reduced VAT, which could help make PNG more affordable for consumers.

No need to store LPG cylinders

One of the practical advantages of PNG is that households do not need to regularly arrange for LPG cylinder deliveries or maintain additional cylinder storage space.

With a functioning pipeline connection, gas can be supplied continuously through the distribution network. This can make cooking fuel management more convenient, particularly for families that use gas regularly.

What is National PNG Drive 2.0?

The government has also been pushing National PNG Drive 2.0

, which includes measures such as household awareness campaigns, notices to consumers, awareness camps and efforts to help housing societies convert from LPG to PNG.

The programme also includes a portal for surrendering LPG cylinders as households transition to piped gas.

Is the scheme a direct cash subsidy for households?

This is an important point.

The new incentive scheme should not be confused with a direct cash subsidy being deposited into every household's bank account

. The financial incentive is primarily structured for City Gas Distribution companies to encourage the expansion and activation of PNG connections.

Therefore, the exact cost of getting a PNG connection and the applicable charges can depend on the local gas distribution company and the area.

Who is likely to benefit the most?

The initiative could be particularly useful for:

  • Families living in cities where PNG infrastructure is already available

  • Residents of apartments and housing societies

  • Households currently dependent on LPG cylinders

  • Consumers in areas where PNG networks are being expanded

  • Housing societies considering a switch from LPG to piped gas

However, availability still depends on whether a PNG pipeline network exists in the consumer's locality.

What should consumers do?

If PNG is available in your area, check with your local City Gas Distribution company about:

  • Whether your address falls within the PNG service area.

  • The cost and process for getting a new connection.

  • Whether your housing society has an existing PNG network.

  • Any security deposit or installation charges.

  • The process for switching from LPG to PNG.

    • The government says the new initiative is part of its broader effort to expand access to cleaner and convenient cooking fuel across Indian households.

    Bottom line

    The September 2026 PNG incentive scheme could make it easier for more Indian households to access piped cooking gas, especially in urban areas where the infrastructure is already being developed. While it is not a direct cash-benefit scheme for consumers, the push to activate unused connections and expand networks could make PNG available to more families and reduce dependence on cylinder deliveries.

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