UPSC Prelims Practice Questions — Incentive Scheme for Promotion of Domestic PNG Connections

Q1. The 'Incentive Scheme for Promotion of Domestic PNG Connections', which offers City Gas Distribution entities additional cheaper domestic gas for converting unbilled connections into billed ones, is a scheme of which one of the following?

  • A. Ministry of New and Renewable Energy, which administers the national biogas and clean cooking energy programmes
  • B. Ministry of Petroleum and Natural Gas
  • C. Petroleum and Natural Gas Regulatory Board, the statutory downstream regulator for gas distribution
  • D. Ministry of Housing and Urban Affairs, which anchors urban utility networks under its urban missions

Q2. Under the Incentive Scheme for Promotion of Domestic PNG Connections, how much additional lower-priced domestic APM gas is allocated to an eligible City Gas Distribution entity for every incremental billed domestic PNG connection above its Geographical Area threshold?

  • A. 100 standard cubic metres
  • B. 150 standard cubic metres
  • C. 200 standard cubic metres
  • D. 250 standard cubic metres

Q3. Consider the following statements regarding the Petroleum and Natural Gas Regulatory Board (PNGRB) and the City Gas Distribution (CGD) authorisation framework in India: 1. PNGRB authorises entities to lay, build, operate or expand a city or local natural gas distribution network. 2. PNGRB determines, by order, the period of exclusivity for such a network in accordance with principles laid down in its own regulations. 3. The Geographical Areas authorised so far cover about 88 per cent of the total geographical area of the country. 4. The 307 authorised Geographical Areas are spread over about 407 districts of the country. Which of the statements given above is/are NOT correct?

  1. PNGRB authorises entities to lay, build, operate or expand a city or local natural gas distribution network.
  2. PNGRB determines, by order, the period of exclusivity for such a network in accordance with principles laid down in its own regulations.
  3. The Geographical Areas authorised so far cover about 88 per cent of the total geographical area of the country.
  4. The 307 authorised Geographical Areas are spread over about 407 districts of the country.
  • A. 3 and 4
  • B. 1 and 2
  • C. 1 only
  • D. 2, 3 and 4

Q4. The 307 Geographical Areas authorised by PNGRB for development of City Gas Distribution networks are spread over how many States and Union Territories?

  • A. 26
  • B. 27
  • C. 34
  • D. 36

Q5. Consider the following statements about the Administered Price Mechanism (APM) for domestically produced natural gas in India: 1. The APM price applies to natural gas regasified by GAIL and Petronet LNG at their import terminals. 2. The APM price is fixed at 10 per cent of the monthly average of the Indian Crude Basket and is notified on a monthly basis. 3. The APM price so notified is subject to both a floor and a ceiling. 4. Gas produced from new wells or well interventions in the nomination fields of ONGC and OIL is allowed a premium of 20 per cent over the APM price. Which of the statements given above is/are NOT correct?

  1. The APM price applies to natural gas regasified by GAIL and Petronet LNG at their import terminals.
  2. The APM price is fixed at 10 per cent of the monthly average of the Indian Crude Basket and is notified on a monthly basis.
  3. The APM price so notified is subject to both a floor and a ceiling.
  4. Gas produced from new wells or well interventions in the nomination fields of ONGC and OIL is allowed a premium of 20 per cent over the APM price.
  • A. 1 only
  • B. 1 and 4
  • C. 2 and 3
  • D. 3 and 4

Q6. The revised guidelines for domestic natural gas pricing, under which the APM price is notified every month as a percentage of the Indian Crude Basket, were approved by which one of the following?

  • A. The Petroleum and Natural Gas Regulatory Board, which alone fixes all natural gas prices prevailing in India
  • B. The Directorate General of Hydrocarbons, which determines every price for domestically produced gas
  • C. The NITI Aayog, acting through its standing expert group on energy pricing reform
  • D. The Union Cabinet, on the recommendations of an expert committee on gas pricing

Q7. Under the PNGRB authorisation framework for City Gas Distribution, the obligation to achieve the Minimum Work Programme (MWP) targets, including domestic PNG connection targets, for a Geographical Area rests primarily on which one of the following?

  • A. The Directorate General of Hydrocarbons, as the technical arm monitoring field development commitments
  • B. The CGD entity authorised for that Geographical Area
  • C. GAIL (India) Limited, as the operator of the National Gas Grid trunk pipeline network
  • D. The State Government within whose districts the Geographical Area falls

Q8. Consider the following statements comparing the progress of domestic PNG connections in India with the targets set under the Minimum Work Programme: 1. Domestic PNG connections rose from over 72 lakh at the start of the decade to about 1.19 crore as on 31 October 2023. 2. From about 1.57 crore in September 2025, the base cited at the rollout of the 2026 incentive scheme had risen to about 1.74 crore. 3. The Minimum Work Programme target of about 12.63 crore PNG connections across the authorised Geographical Areas is to be achieved by 2030. Which of the statements given above is/are correct?

  1. Domestic PNG connections rose from over 72 lakh at the start of the decade to about 1.19 crore as on 31 October 2023.
  2. From about 1.57 crore in September 2025, the base cited at the rollout of the 2026 incentive scheme had risen to about 1.74 crore.
  3. The Minimum Work Programme target of about 12.63 crore PNG connections across the authorised Geographical Areas is to be achieved by 2030.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q9. As per the Year End Review 2025 of the Ministry of Petroleum & Natural Gas, the number of CNG stations established in the country by City Gas Distribution entities had increased to over how many?

  • A. 4,400
  • B. 6,400
  • C. 8,400
  • D. 10,400

Q10. The authorisation to lay, build, operate or expand a city or local natural gas distribution network — through which both domestic PNG and CNG for transport are supplied — is granted by which one of the following?

  • A. The Petroleum and Natural Gas Regulatory Board, under the PNGRB Act, 2006
  • B. The Petroleum and Explosives Safety Organisation, which alone licenses all gas facilities in the country
  • C. The Directorate General of Hydrocarbons, under the Ministry of Petroleum and Natural Gas
  • D. The Oil Industry Safety Directorate, which authorises every downstream distribution network

Q11. Consider the following statements regarding the gap in domestic PNG connections that the 2026 incentive scheme seeks to close: 1. As on March 2026, of about 1.69 crore households connected to the PNG network, nearly 90 per cent were billed and actively consuming gas. 2. The threshold for a Geographical Area under the scheme is the average monthly addition of connections during April-June, raised by 10 per cent. 3. The additional APM gas is earned only on incremental billed connections above the threshold, and not on connections that are merely released or laid. Which of the statements given above is/are correct?

  1. As on March 2026, of about 1.69 crore households connected to the PNG network, nearly 90 per cent were billed and actively consuming gas.
  2. The threshold for a Geographical Area under the scheme is the average monthly addition of connections during April-June, raised by 10 per cent.
  3. The additional APM gas is earned only on incremental billed connections above the threshold, and not on connections that are merely released or laid.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q12. Consider the following statements about the policy measures under India's push towards a gas-based economy: 1. The share of natural gas in India's primary energy mix is targeted to be raised to 15 per cent by 2030. 2. The National Gas Grid is envisaged to be expanded to about 35,000 km from the earlier level of about 20,000 km. 3. LNG imports are placed under the Open General Licensing category and LNG infrastructure, including terminals, permits 100 per cent FDI through the automatic route. 4. Blending of Compressed Bio-Gas has been kept purely voluntary for CGD entities in the CNG (Transport) and PNG (Domestic) segments. Which of the statements given above is/are NOT correct?

  1. The share of natural gas in India's primary energy mix is targeted to be raised to 15 per cent by 2030.
  2. The National Gas Grid is envisaged to be expanded to about 35,000 km from the earlier level of about 20,000 km.
  3. LNG imports are placed under the Open General Licensing category and LNG infrastructure, including terminals, permits 100 per cent FDI through the automatic route.
  4. Blending of Compressed Bio-Gas has been kept purely voluntary for CGD entities in the CNG (Transport) and PNG (Domestic) segments.
  • A. 1 and 4
  • B. 2 and 3
  • C. 3 only
  • D. 4 only