Policy

Centre mulls new scheme to boost CBG production

The Government of India is preparing to introduce a comprehensive policy aimed at boosting compressed biogas (CBG) production and reducing the country’s dependence on imported natural gas, which currently accounts for nearly half of domestic consumption.

Over the past two financial years, India has spent more than $28.5 billion on natural gas imports, underscoring the urgency of enhancing domestic alternatives.

As part of the proposed framework, states will receive financial incentives through the Special Assistance to States for Capital Investment (SASCI) scheme. This initiative provides 50-year interest-free loans to support capital investments and policy interventions related to CBG development, according to Alok Tripathi, Joint Secretary in the Ministry of Petroleum and Natural Gas.

The GOBARdhan scheme, launched in 2018 under the Swachh Bharat Mission, will serve as the foundation of this integrated approach. It aims to convert organic waste such as cattle dung, agricultural residue, and kitchen waste into biogas and bio-slurry, promoting clean energy and rural sustainability. Despite its ambitious target of producing 15 million tonnes of CBG, progress has been limited.

The government has also exempted CBG blended with CNG from excise duty to stimulate demand and improve market viability.

 The government informed last December that India added significant bioenergy capacity over the last ten years, installing 2,361 MW of biomass-based power, 228 MW of waste-to-energy capacity and around 2.88 lakh biogas plants across the country. The current National Bioenergy Programme Phase-I aims to further accelerate the deployment of biogas, biomass, and waste-to-energy projects, strengthening India’s clean energy transition while promoting sustainable waste management and rural livelihoods.

Subhash Yadav

Recent Posts

Kirloskar aims at Rs 2100 crore profit steered by biogas orders

Kirloskar Pneumatic Company Limited (KPCL) has reaffirmed its ambition to achieve Rs 2,100 crore in…

15 hours ago

Petrol import is cheaper but ethanol vital for self-reliance: Govt in Parliament

The Centre has clarified in Parliament that ethanol blending is not aimed at reducing petrol…

15 hours ago

Waga Energy secures €128 million for biomethane expansion across Europe

French green technology company Waga Energy has secured a €128 million financing agreement to accelerate…

15 hours ago

CM Vijay orders construction of biogas plants across Tamil Nadu

Tamil Nadu Chief Minister C. Joseph Vijay carried out a surprise inspection of Chetpet Biogas…

2 days ago

Grand Butanol Challenge: 7 PSUs come together to bolster biofuel innovation

India’s push towards clean and self-reliant energy has received a significant boost with the launch…

2 days ago

Ethanol blending program saved India’s Rs 1.97 lakh crore: Suresh Gopi

India’s ethanol blending programme has delivered significant economic and environmental gains, with cumulative foreign exchange…

2 days ago