Government Grants Extra 200 SCM PNG per New Connection
· India · The Hindu, News On AIR
The government announced that city‑gas distributors will receive an additional 200 standard cubic metres of lower‑priced Administered Price Mechanism gas for every incremental domestic‑PNG connection on top of existing thresholds, effective September 1. The allotment is to run in two tranches over six months to help distributors offset the high LNG sourcing costs caused by tensions in West Asia. At present, the APM gas comes from conventional fields operated by OIL and ONGC. The scheme is expected to cut the payback period for D‑PNG capital expenditure from approximately ten years to around three years, encouraging faster household connectivity.
Why it matters
City‑gas distributors and Indian households stand to gain lower gas costs and quicker returns on piped‑gas infrastructure, boosting access to cleaner cooking fuel.
Read the original report — The Hindu
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