India has launched the third phase of its nationwide drive to expand the use of piped natural gas (PNG) in households, with the government setting ambitious targets for new connections and greater utilisation of the existing city-gas network.
Union Petroleum Minister Hardeep Singh Puri, along with the Petroleum and Natural Gas Regulatory Board (PNGRB) and city-gas distribution companies, launched National PNG Drive 3.0 on Thursday.
The programme will remain in operation until the end of the 2026-27 financial year, with a broader emphasis on converting network availability into actual household consumption.
50 Lakh New PNG Connections Targeted
One of the central objectives of the third phase is to add 50 lakh new domestic PNG connections by the end of FY27.
The initiative also aims to bring more households that already have connections into active consumption. Under the programme, around 40 lakh existing connections are targeted for conversion into active consumers.
In addition, the government has set a target of onboarding another 50 lakh domestic PNG registrations during the campaign.
Focus Shifts Beyond Installing Connections
The latest phase places greater attention on the utilisation of the existing gas distribution infrastructure.
Simply expanding the number of household connections does not necessarily translate into higher gas consumption if registered consumers do not begin using PNG regularly. The new targets therefore combine network expansion with efforts to activate existing connections.
This approach could help city-gas distributors improve utilisation of infrastructure that has already been developed while encouraging more households to shift towards piped gas.
Role of City Gas Distributors
City-gas distribution companies will play an important role in implementing the programme at the local level.
Their responsibilities include connecting households to PNG networks and supporting the transition of existing registered customers into active consumers. The participation of the PNGRB is also significant because the regulator oversees the development and functioning of the city-gas distribution framework.
The scale of the targets means that execution across different cities and consumer markets will be an important part of the programme's progress.
What PNG Expansion Means for Households
Piped natural gas is supplied directly to connected homes through a distribution network, eliminating the need for households to arrange individual LPG cylinders for routine cooking requirements.
As the PNG network expands, households in covered areas may gain access to another cooking-fuel option. The effectiveness of the programme, however, will depend not only on the number of connections created but also on how many registered households actually become regular consumers.
Businesses involved in energy-related operations and infrastructure may also need to monitor the impact of changing distribution networks and demand patterns. Business Advisory can be relevant when assessing broader operational and financial considerations arising from such market developments.
Programme Runs Through FY27
National PNG Drive 3.0 will continue until the end of FY2026-27.
Its targets bring together three areas: adding new domestic connections, activating existing connections and increasing the number of registered household consumers.
The government will therefore be looking beyond the headline number of installations to determine how effectively the expanded PNG network is being utilised.
Key Targets Under PNG Drive 3.0
- 50 lakh new domestic PNG connections
- 40 lakh existing connections targeted for conversion into active consumers
- 50 lakh additional domestic PNG registrations
- Programme period: until the end of FY2026-27
The initiative marks another step in India's effort to expand household access to city-gas networks while placing greater emphasis on turning infrastructure expansion into actual consumer usage.