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Key Points

5 points
1

Start date: September 1, 2026.

2

Incentive: 200 standard cubic meters of local gas per new connection.

3

Value added tax on natural gas reduced to five percent in several states.

4

Faster approval under the Accelerated Approval Framework.

5

Payback period reduced from ten years to three years.

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Summary

Piped natural gas, delivered through underground pipelines, is safer and usually cheaper than traditional LPG cylinders.

City gas distribution companies will receive an additional 200 standard cubic meters of domestically produced gas for each new billed connection they achieve, encouraging rapid expansion.

The scheme includes faster approval processes, reduced value added tax on natural gas to five percent, and a digital portal to simplify applications.

By lowering costs and speeding up connections, the government expects the payback period for the infrastructure to drop from around ten years to about three years.

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New Words to Learn

9 words
incentive scheme
a plan that offers extra rewards to encourage companies to do something
piped natural gas
cooking gas that is sent through underground pipes
city gas distribution companies
businesses that supply gas to households
standard cubic meter
a unit used to measure the amount of gas
value added tax
a small tax added to the price of a product by the government
accelerated approval framework
a faster way for the government to approve gas projects
payback period
the time it takes to recover the money spent on a project
pollutants
harmful substances that can make the air dirty
carbon emissions
gases released into the atmosphere that can affect the climate
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