MGL, IGL, Adani Total Gas: CGD stocks rally as Centre unveils domestic PNG incentive scheme; key details

Shares of Mahanagar Gas (MGL), Indraprastha Gas (IGL) and Adani Total Gas traded with notable gains in the early trade on Wednesday, August 19, after the Centre approved an incentive scheme to accelerate domestic piped natural gas (PNG) connections from September 1, 2026.

The scheme aims to speed up the conversion of unbilled PNG connections into active, billed households while encouraging city gas distribution (CGD) companies to expand their networks into new areas.

At 9:41 AM, shares of Mahanagar Gas traded 3.83% higher at ₹1,154 apiece on the NSE, while Indraprastha Gas (IGL) was up 3.09% at ₹154.01. Adani Total Gas traded 2.24% higher at ₹661.80. Gujarat Energy (formerly Gujarat Gas); however erased all its gains and was trading in the red. The stock was down 0.32% at ₹268.55 on the NSE.

Details shareholders need to know

What are unbilled PNG connections?

Unbilled PNG connections refer to households where the gas pipeline infrastructure has been installed or extended by a City Gas Distribution company, but the pipeline is either inactive, lacks a working meter, or has not yet started generating regular gas consumption bills for the customer.

What is the Centre's move?

Under the scheme, eligible CGD companies will receive an additional 200 standard cubic metres (SCM) of lower-priced domestically produced APM gas for every incremental billed domestic PNG connection above a prescribed threshold.

The cheaper gas can replace costlier imported LNG used in the CNG transport segment, reducing overall gas procurement costs and improving profitability.

The government said that the resulting cost savings are expected to shorten the payback period for capital expenditure incurred on D-PNG connections from around 10 years to approximately three years — giving CGD entities a strong financial incentive to expand household PNG connectivity more rapidly, bringing the benefits of clean, safe and affordable piped cooking gas to a larger number of Indian households in the months ahead.

India currently has 1.74 crore domestic PNG connections, and the scheme complements recent measures such as streamlined right-of-way approvals, VAT rationalisation and the upcoming unified PNG registration portal to boost clean cooking fuel adoption.

What is APM gas?

APM (Administered Price Mechanism) gas is domestically produced natural gas whose price is set by the government, making it significantly cheaper than imported liquefied natural gas (LNG).

Under the new PNG incentive scheme, city gas distributors such as IGL, Mahanagar Gas, and Adani Total Gas will receive additional allocations of this lower-cost APM gas for every new billed household PNG connection they add.

This helps reduce their fuel sourcing costs and makes expanding piped gas networks more financially attractive.