NEW DELHI: To promote the expansion of PNG network and ensure more families start using piped gas in their kitchens, the government on Tuesday approved an incentive scheme promising additional lower-priced domestic gas to distribution companies for each new connection activated by them.According to the government, city gas distribution (CGD) companies have made provision for more than 1.7 crore domestic PNG connections across the country, but the actual number of billed or active connections is only over 1.1 crore. Under the new scheme, CGD companies will be allocated an additional 200 standard cubic metres of domestically produced, lower-priced (APM) gas for each unbilled connection converted into a working one above the threshold level.
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The additional gas allocation will substitute the costlier liquefied natural gas that CGD entities currently procure for their compressed natural gas (transport) segment, thereby lowering their overall gas-sourcing costs.“The resulting cost savings are expected to shorten the payback period for capital expenditure incurred on domestic PNG connections from around 10 years to approximately 3 years — giving CGD entities a strong financial incentive to expand household PNG connectivity more rapidly and bringing the benefits of clean, safe and affordable piped cooking gas to a larger number of Indian households in the months ahead,” the petroleum ministry said in a statement.