Enablers of Scheme

Assured Long term Pricing

  • An Expression of Interest (EOI) to procure CBG by IndianOil was released under the SATAT scheme on 1st October 2018. As per the EOI, the price offered for CBG by Oil & gas companies is as follows:
S No Lower Retail Selling Price of CBG ìn Slab (inclusive of tax)in Rs/kg Higher Retail Selling Price of CBG ìn Slab (inclusive of tax)in Rs/kg Procurement Price of CBG(without GST)in Rs/kg Procurement Price of CBG(with GST)in Rs/kg
1 Retail Selling Price of CBG upto Rs 70 Rs 54.00 Rs 56.70
2 Rs 70.01 Rs 75 Rs 55.25 Rs 58.01
3 Rs 75.01 Rs 80 Rs 59.06 Rs 62.01
4 Rs 80.01 Rs 85 Rs 62.86 Rs 66.01
5 Rs 85.01 Rs 90 Rs 66.67 Rs 70.01
6 Rs 90.01 Rs 95 Rs 70.48 Rs 74.01
7 Rs 95.01 Rs 100 Rs 74.29 Rs 78.01
    Note: The above table is applicable strictly for supply of CBG at a one-way distance of 75 km from the CBG Plant. For distance beyond 75 km, the price will be defined as per the notification on CBG Procurement Price Revision.

Facilitation by OMCs through LOI

  • Oil & gas companies shall facilitate Plant owners in design, erecting, construction, commissioning of the CBG Plants.
  • Oil & gas companies will off-take and market the CBG produced.
  • Oil & gas companies will also facilitate marketing of Bio-manure produced from the CBG Plants. For facilitating the same, IndianOil has entered into MoU with National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED).
  • Oil & gas companies are entering into MoU with State Governments for facilitating CBG plants. IndianOil has entered into MoU with Government of Punjab and Government of Haryana for facilitating setting up of CBG Plants. Execution of similar MoU sare also being explored with State Governments of Chhattisgarh, Uttar Pradesh and Andhra Pradesh.
  • Policy guideline has been issued for synchronization of CBG produced by plants under SATAT scheme in the City Gas Distribution (CGD network).

Priority Sector lending

As per the revised Priority Sector Lending (PSL) guidelines issued by Reserve Bank of India (RBI) dated 04th September 2020, Loans for setting up Compressed Bio Gas (CBG) plants have been included as fresh categories eligible for finance under priority sector, which would enable better credit penetration for setting-up CBG plants.

Fertilizer control order

To promote the manure produced from CBG plants, Fermented Organic manure (FOM) and Digested Biogas Slurry have been included under Fertilizer Control Order (FCO) 1985.

Central Financial Assistance (CFA) provided by MNRE

Ministry of New and Renewable Energy provides capital subsidy for Compressed Biogas (CBG) projects under “Programme on Energy from Urban, Industrial, Agricultural Wastes/Residues and Municipal Solid Waste”.

As per the revised guideline dated 28th February 2020, the scheme is extended till 31st March 2021 or till the date the recommendations of 15th FC come into effect. Details of MNRE subsidy for CBG projects (as per the latest guidelines) are as follows:

Product CFA Description

BioCNG / Enriched Biogas / Compressed Bio Gas

Rs 4.0 Crore per 4800 kgs of BioCNG/day generated from 12000 m3 Biogas/day (Mweq)

(Maximum CFA - Rs 10 Crore/project)

Upcoming Biogas plants, which produce BioCNG / Enriched Biogas Produced from Biogas generated through biomethanation of Urban waste including segregated MSW/ Agricultural Waste / Industrial wastes / Effluents or mix of these wastes, are eligible for this financial assistance.

In case developer wants to set up BioCNG/Enriched Biogas generating unit at already existing Biogas plant or at distillery effluent based Biogas plant, applicable CFA will be Rs 3.0 Crore/MWeq