Petroleum Minister Dharmendra Pradhan said on Friday that the country is likely to see investments worth Rs 2 trillion to set up 5,000 compressed bio-gas (CBG) units across the country.
The minister was addressing an event after signing the memorandum of understanding for setting up 900 CBG plants as part of SATAT (Sustainable Alternative Towards Affordable Transportation) initiative by the government.
On Friday, the Ministry of Petroleum and Natural Gas signed MOUs with energy companies like JBM Group, Adani Gas, Torrent Gas and Petronet LNG for setting up the CBG plants. The ministry also signed MoUs with technology providers in CBG sectors like IndianOil, Praj Industries, CEID Consultants, and Bharat Biogas Energy.
Pradhan said, “We have developed a clear-cut roadmap for 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 1,500 CBG plants are at various stages of execution.” Around Rs 30,000 crore of investment is envisaged in these 900 plants. “A total of 5,000 CBG plants with an approximate investment of Rs 2 trillion are envisaged. Biofuels have the potential to reduce our fuel import bill by Rs 1 trillion,” he added.
Pradhan said the Reserve Bank of India (RBI) has included CBG in the priority sector lending framework. SATAT, an initiative to boost production and availability of CBG as an alternative and affordable clean fuel for transportation, was launched in October 2018. The scheme envisages setting up of 5,000 CBG plants by FY24.
“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 the liberalised 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,” Pradhan said.