IFGE applauds budget announcements for CBG, CCUS & EV sectors

The Indian Federation of Green Energy (IFGE) has welcomed the budget announcements for Biogas-Blended CNG, carbon capture-utilization-storage (CCUS) and electric vehicle (EV) sectors.

IFGE held that for Biogas/Compressed Biogas (CBG) Sector, exempting the value of CBG contained in blended Compressed Natural Gas (CNG) from the computation of central excise duty is a progressive measure. This reform addresses double taxation issue and strengthens the commercial viability of CBG blending in the CNG ecosystem.

The federation hopes to ensure increased offtake of CBG by City Gas Distribution (CGD) companies and also facilitate direct dispensing of biomethane by CBG producers to end users. Such enabling measures will enhance market access, improve revenue certainty, and significantly benefit CBG producers, thereby supporting the sustainable growth of the sector.

Sanjay Ganjoo, Director General, IFGE, said, “The exclusion of CBG value from excise duty calculation is a timely and positive step that will improve the competitiveness of CBG and encourage higher blending. However, to truly accelerate the scale-up of the CBG sector, adequate budgetary allocation across all aspects of CBG value chain is necessary so that more biogas generation and the productive utilisation of Fermented Organic Manure (FOM) happen.

Regarding the CCUS, the IFGE DG highlighted that an outlay of Rs. 20,000 crore proposed over the next five years is a big step to strengthen CCUS sector and would be providing the economic viability for decarbonization of hard to abate sectors namely power, steel, refineries, cement, and chemicals.

Further to above, he also congratulated the players of EV bus manufacturers for the provision of 4,000 e-buses which will open a new market in East Coast Industrial Corridor while creation of five tourism destinations in Purvodaya States.

The exemption of basic customs duty (BCD) given to capital goods used for manufacturing Lithium-Ion Cells for batteries is a supportive measure and will support the EV Industry in reducing costs.

IFGE is coming up with sixth edition of its prestigious India Green Energy Awards which in the past have been supported by the Government of India and key institutions.