Petroleum Minister 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.

Advertisement


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 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 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.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here