PROMOTION OF DOMESTIC PNG CONNECTIONS
Discuss the significance of the Incentive Scheme for Promotion of Domestic PNG Connections in advancing India’s energy security and clean energy transition.
Model Answer
Introduction:
The scheme aims to convert unbilled PNG connections into active, billed connections, thereby improving utilisation of the CGD network.
Significance:
- Energy security → Promotes domestic APM gas + reduces reliance on costly LNG.
- Cleaner fuel → Lower pollutants and emissions than conventional cooking fuels.
- Consumer convenience → Continuous supply + no cylinder storage/booking.
- Cost efficiency → Lower gas sourcing costs for CGD entities + shorter payback period.
- Infrastructure utilisation → Converts dormant connections into active consumers.
- Urban energy transition → Supports wider adoption of natural gas.
Challenges:
- High last-mile infrastructure costs.
- Initial connection costs for households.
- Uneven gas availability + dependence on LNG.
- Different state-level VAT rates.
- Low awareness and continued preference for LPG.
Way Forward:
Expand CGD infrastructure + rationalise gas taxation + ensure reliable domestic gas supply + provide targeted support for vulnerable households.
Conclusion:
The scheme can move India from merely expanding PNG infrastructure to ensuring active, affordable and sustainable household gas access.