Centre offers city gas distributors APM-gas incentive to expand home PNG
A new incentive scheme will grant city gas distributors 200 SCM of domestic APM gas per incremental billed PNG household connection. Effective September 1, 2026, it targets faster network expansion by cutting estimated connection-capex payback from about 10 years to three.
What happened
Government of India · The Centre approved incentives for city gas distributors to add and activate domestic PNG connections, offering extra low-cost APM gas
Key facts
- 200 SCM of domestically produced APM gas per incremental billed domestic PNG connection
- 1.74 crore domestic PNG connections nationwide
- Payback period estimated to fall from around 10 years to approximately 3 years
- Two implementation tranches over six months
- Scheme effective September 1, 2026
Why this matters
City-gas distributors with dense urban footprints and scalable last-mile infrastructure become more attractive partnership or acquisition targets as subsidized PNG connection growth accelerates.