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Compressed Bio Gas

(i) Sustainable Alternative Towards Affordable Transportation (SATAT) was launched on 1st October 2018 aiming to establish an ecosystem for production of Compressed Bio Gas (CBG) from various waste/ biomass sources in the country.

(ii) Under SATAT, Oil and Gas Marketing Companies IOCL, BPCL, HPCL, GAIL and IGL have invited Expression of interest (EoI) to procure CBG from potential entrepreneurs for further marketing.

(iii) A list of the recent initiatives taken be the Ministry to promote SATAT is as under:

  • a) Oil & Gas marketing companies are executing long term agreements for off-take of CBG at an assured price.
  • b) Bio manures produced from CBG plants has been included as “Fermented Organic Manure” under Fertilizer Control Order 1985 vide gazette notification dated 13 July 2020.
  • c) Reserve Bank of India has notified inclusion of CBG projects under Priority Sector Lending vide directives to Banks dated 4.9.2020.
  • d) State Bank of India has also developed a new loan product for financing of CBG projects.
  • e) Ministry of New and Renewable Energy has extended Central Financial Assistance (CFA) Scheme for FY 2020-21.
  • f) State Level Committees have been constituted for implementation and monitoring of SATAT initiative in States of Haryana and Punjab
  • g) MoPNG is also in discussion with Multilateral Financial Institutions like World Bank, Asian Development Bank (ADB) etc. for enabling financing options via line of credit for CBG developers.

(iv) Further Ministry is also engaged with:

  • a) State Government to create enabling mechanism for establishing Bio mass supply chain to ensure sustainable supply of bio mass at a stable price for at least a period of 10 years.
  • b) Ministry of Agriculture and Farmers Welfare to include Digested Bio Gas Slurry (DBGS) produced from CBG projects under FCO.
  • c) Central Pollution Control Board to categorize CBG Projects under ‘White Category’.
  • d) Department of Fertilizer to extend benefits of Market Development Assistance in form of Rs. 1500/ton to FOM and direct fertilizer companies and marketing entities to co-market FOM with fertilizers.
  • e) Department of Economic Affairs to facilitate creation of line of funding from multilateral financial institutions for CBG projects.
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