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IGL, MGL and Adani Total Gas jump after PNG connection incentive clears
The government cleared an APM/NAPM incentive that adds 200 SCM of domestic APM gas per incremental billed household, starting Sept. 1, 2026.
Shares of India’s major gas distribution firms, including Indraprastha Gas (IGL), Mahanagar Gas (MGL) and Adani Total Gas, rose as much as 4% in Wednesday trading, even as broader market sentiment stayed subdued.
LiveMint Markets said the gains followed government clearance of an incentive scheme aimed at accelerating expansion of domestic piped natural gas, or PNG, connections for households. IGL shares climbed as much as 4.3% on NSE, while MGL rose 3.74% and Adani Total Gas gained 2.36% on Aug. 19.
Under the APM/NAPM Incentive Scheme for the Promotion of Domestic PNG Connections, eligible city gas distribution companies will receive an extra 200 standard cubic metres of domestically produced, relatively cheaper APM gas for each incremental billed household PNG connection beyond the threshold for their geographical area.
The scheme is set to run in two six month phases, taking effect on Sept. 1, 2026. The government expects the additional lower cost gas to help CGD firms substitute away from more expensive LNG used in their CNG supply, cutting sourcing costs, and reducing the expected capital expenditure payback period for new domestic PNG connections to around three years from nearly 10 years.
Latest closeNat gas $2.715 ▼0.4%