Consolidation of Compressed Biogas (CBG) Policy
The petroleum and natural gas ministry is proposing the consolidation of the CBG policy, financial, and infrastructure schemes under a unified platform to enhance project execution, minimize overlaps, and strengthen investor confidence.
Current Administrative Structure
- The Ministry of Renewable Energy (MNRE) administers financial incentives.
- The Department of Fertilizers (DoF) manages market development.
- The Petroleum Ministry is responsible for pipeline infrastructure and biomass aggregation machinery.
Proposed National Integrated CBG Promotion Scheme (NICPS)
- Aim: To unify existing central government CBG schemes.
- The Petroleum Ministry will oversee operations, monitor, and handle inter-ministerial coordination.
- The MNRE and DoF will continue their financial and administrative responsibilities.
- Benefits: Ensures synergy, eliminates overlaps, and accelerates project implementation.
Current CBG Production Scenario
- Launch of Sustainable Alternative Towards Affordable Transportation (SATAT) initiative in 2018 to promote CBG production.
- 134 plants producing and selling CBG, with about 70% owned by Indian Oil and Gail.
- In the last fiscal year, 42,700 metric tonnes of CBG was sold.
- Private companies have plans to set up CBG plants, though progress is slow.
Challenges and Objectives
- Challenges: Land availability, assured pricing, reliable feedstock supply, access to credit, and logistics infrastructure.
- Objective: Provide end-to-end support from project development to marketing, reducing project risk, lowering logistics costs, and improving returns.
- Goal: Accelerate the creation of a circular bio-economy in the country.
