Rs. 2 lakh crore to be invested to set up 5000 CBG Plants says Union Petroleum Minister

MOU for 5000 CBG Plants in India

On 20th November 2020, a MoU was signed today between MoPNG and leading oil & gas marketing companies and technology providers to establish Compressed Bio-Gas ( CBG) plants across India under the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, to boost availability of affordable and clean transport fuels across the country. Government of India, under the SATAT initiatives envisages setting up of 5000 CBG plants by 2023-24 with production target of 15 MMT, facilitating the creation of new employment opportunities and enhancing farmers’ income towards further invigorating the rural economy.

Over the last two years, SATAT has grown into one of flagship programs of MoPNG. SATAT will establish an ecosystem for the production of Compressed Bio Gas from various waste and biomass sources in the country leading to multiple benefits viz. reduction of natural gas import, reduction of GHG emission, reduction in burning of agriculture residues, remunerative income to farmers, employment generation, effective waste management etc. The initiative is in line with the goals of AatmaNirbhar Bharat, Swachh Bharat Mission and boosting MSME sector.

“We have developed a clear-cut roadmap for SATAT. I am glad to note that Indian industry players have shown immense interest in SATAT. Letter of intent for 600 CBG plants have already been given and with today’s signing of MoUs for 900 plants, a total of 1500 CBG plants are at various stages of execution. Rs 30,000 Cr of investment is envisaged in these 900 plants. A total of 5000 CBG plants with approximate investment of Rs. 2 lakh crores are envisaged. Biofuels have the potential to reduce our fuel import bill by Rs. 1 lakh crore.”

“Benefits out of the SATAT will go to our farmers, rural areas and tribals. With inclusion of forest waste, Agri-waste, animal husbandry waste and marine waste, SATAT involves a multi-pronged approach. With liberalized policy regime ensuring ease of doing business for entrepreneurs, off-take guarantee, financing and technology support, SATAT is all set to contribute towards doubling farmer’s income, generating employment for the youth and ensuring clean energy for sustainable development.

Shri Dharmendra Pradhan, Minister of Petroleum and Natural Gas

The MoUs were signed in the presence of Union Minister of petroleum and Natural Gas & Steel Shri Dharmendra Pradhan. MoUs  were signed with energy companies viz. JBM Group, Adani Gas, Torrent Gas and Petronet LNG for setting up of Compressed Bio-Gas (CBG) plants, and with technology providers in CBG sectors IndianOil, Praj Industries, CEID Consultants & Bharat Biogas Energy for facilitating availability of technology for the projects.

Secretary, MoPNG, Shri Tarun Kapoor sharing his insights, termed this as a remarkable achievement, as infusion of big companies in the CBG sector will provide the sector with much sought guidance and technical expertise towards the success of SATAT.

Shri Pradhan, in his address, affirmed that completion of 5000 CBG plants will facilitate in lowering greenhouse gas emissions, remunerating farmers for agricultural residues and reducing natural gas imports, in line with the Aatmanirbhar Bharat and Swacch Bharat missions. MOU Signing ceremony marks MoPNG’s commitment towards SATAT and the increased participation of the private sector would help the nation in achieving indigenous and sustainable production of clean fuel. SATAT initiative is also an important step towards fulfilment of India’s COP-21 commitments for carbon emission reduction.

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