Panel backs prepaid PNG metering, PLI support for smart meter makers

A panel has proposed prepaid smart PNG metering nationwide and suggested PLI support for manufacturers to boost adoption, improve billing efficiency and strengthen CGD finances

A committee set up to recommend a road map for the implementation of smart domestic piped natural gas (PNG) meters has suggested shifting to a prepaid billing regime nationwide to improve commercial viability, along with offering a production-linked incentive (PLI) for meter manufacturers.

 

The five-member committee found that, based on technical performance, lifecycle cost analysis, and implementation readiness, smart diaphragm-based domestic PNG meters are the most feasible and cost-effective solution for large-scale deployment across the city gas distribution (CGD) sector.

 

“The assessment established that smart meters offer clear advantages over conventional meters, including automated meter reading, real-time consumption monitoring, improved billing accuracy, enhanced safety through remote shut-off in case of leakage or tampering, real-time tamper alerts, and greater consumer transparency,” the panel said.

   

The committee, headed by Anjan Kumar Mishra, secretary at the Petroleum and Natural Gas Regulatory Board (PNGRB), argued that prepaid smart metering with remote communication eliminates bad debts, strengthens revenue protection, reduces operational expenditure, and improves cash flows for CGD entities.

 

The committee’s deliberations with CGD entities revealed persistent challenges under the conventional postpaid regime, including payment defaults, accumulation of receivables, high recovery costs, and recurring expenditure on manual billing and meter reading.

 

“Industry data indicated that a significant proportion of domestic consumers default on payments, resulting in a substantial financial and operational burden for CGD entities. The committee observed that prepaid smart metering directly addresses these challenges and delivers tangible operational and financial benefits, making CGD entities the primary beneficiaries of smart domestic PNG meter implementation,” the panel said in its report.

 

Accordingly, the committee said any additional expenditure associated with smart metering should not be passed on to consumers and may be borne by CGD entities.

 

The panel also recommended amendments to PNGRB Technical Standards and Specifications including Safety Standards Regulations to incorporate standards for smart meter functionalities, development of uniform data communication and cybersecurity protocols, and collaboration with the Bureau of Indian Standards and the National Informatics Centre to ensure standardisation and interoperability, respectively.

 

The committee further suggested that the government explore viability gap funding to support the financial feasibility of large-scale smart meter deployment by CGD entities.

 

“The government may also explore a PLI scheme to incentivise manufacturers of smart PNG meters, making them more affordable and easing adoption,” the committee said.

 

The panel was set up in June 2025 and tasked with examining available smart metering technologies, evaluating their technical and economic feasibility, reviewing the existing regulatory framework, and recommending a structured and sustainable implementation strategy.