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.