Major Steps Involved

Expression Of Interest

An Expression of Interest is floated by Oil & Gas Companies every month. Each EOI is open for a stipulated time period of 30 days. Once an EOI is closed, another EOI is floated in the next month. In the application, applicant shall put location of the proposed/existing plant's location as well as expected CBG Production Capacity. Applicants are free to propose more than one CBG Plant under one application.

The minimum designed capacity of a single CBG Plant to participate in SATAT programme is 2.0 Tonnes Per Day (TPD) of CBG. The application shall be submitted through e-tendering portal and hence, the applicant shall have a valid Digital Certificate for entering details in the e- tendering portal.

Letter of Intent

EOI Submission is followed by evaluation of EOI on a predefined set of parameters, upon qualification of which applicants are issued Letter of Intent by respective Oil & Gas Company

Retail Outlet selection and readiness

After acceptance of LOI, the applicant shall submit a bank guarantee, to safeguard investment of OMCs towards retailing of CBG.

  • For Parties having existing Plant producing Bio-gas / CBG (as on date of application), who have applied for the LOI, a bank guarantee amount of Rs. 1 lakh per CBG Plant, to be obtained within one month after issuance of LOI
  • For new Parties, who are to set up Plants, a bank guarantee amount of Rs. 5 lakh per CBG Plant, to be obtained within one month after issuance of LOI
  • Upon successful submission of Bank Guarantee, depending upon the CBG Plant location, the respective state office is intimated about the LOI Holder, and with mutual consent between the LOI Holder and the concerned Office, Retail Outlets are finalised. The number of ROs allocated depends upon the proposed CBG Production capacity and the location of ROs allocated depends upon the location of proposed CBG plant.

Signing of Commercial Agreement

Upon successful allocation of RO, a commercial agreement is executed between Oil & Gas Company and LOI Holder. The Commercial Agreement includes plant location, initial production capacity, RO allocated as well as details of the pricing model to be followed.

Sale of CBG through RO

The RO infrastructure development is planned according to the estimated date of commissioning of CBG Plant. Once the CBG Plant is commissioned, CBG is supplied by the LOI Holder to the Allocated ROs via cascades and sale of CBG is commenced.