Subsidy on Bio-CNG Plants in India

Hello friends, if you want to start a Bio-CNG plant in India and about subsidies from the government, then this article will help you understand different schemes for subsidy. You can also build your own company. If you want to know about setting up a Bio-CNG manufacturing plant, then definitely read our article on project report on Bio-CNG.

The oil ministry promotes bio-CNG and wants to build bio-CNG (Compressed Natural Gas) plants and related infrastructure in several states to promote clean fuel.

Bio-CNG is biogas that has been cleaned to contain over 95% pure methane gas. Its composition (97 per cent methane) and energy potential are similar to that of natural gas. Bio-CNG is renewable energy from agricultural and food waste, while natural gas is a fossil fuel. It is being considered an alternative to diesel that is more environmentally friendly.

The state-run oil marketing businesses that the oil ministry would work with to implement the strategy include Indian Oil Corp. Bharat Petroleum Corp Ltd, and Hindustan Petroleum Corp Ltd. GAIL India Ltd, a gas marketer, will also participate.

The government of India aims to move to a gas-based economy. This goal includes, among other things, the establishment of various bio-CNG factories across the country. The infrastructure would be the priority. A biogas purification unit, a compressor, and a high-pressure storage system are all part of a conventional bio-CNG station. Bio-CNG might be transported by injecting the fuel into the CNG system, trucks, or cylinders from filling stations.

Currently, India imports one-third of its energy needs. By 2030, the world’s third-largest crude oil importer hopes to have cut its energy import expenditure in half. The government wants to raise gas participation to 15% of India’s energy mix, up from 6.5 per cent.

Government Support Schemes in Different States for Bio-CNG Subsidy

SATAT (Sustainable Alternative Towards Affordable Transportation) Programme

The Petroleum Minister announced the beginning of the SATAT programme to promote compressed biogas as a green alternative transportation fuel. The initiative, dubbed SATAT, aims to provide a Sustainable Alternative to Affordable Transportation as a developmental effort to benefit vehicle users, farmers, and businesspeople. This effort has a lot of potential for improving municipal solid waste management and addressing the issue of dirty urban air caused by farm stubble burning and carbon emissions. CBG will also aid in reducing reliance on crude oil imports and achieving the Prime Minister’s goal of increasing farmer income, rural employment, and entrepreneurship.

Individual states have also stepped forward to promote CBG projects. Several states, including Haryana, Punjab, Uttar Pradesh, and others, have constituted State Level Committees to oversee the SATAT Scheme’s implementation and monitoring. This type of subsidy helps to promote the Bio-CNG business in India.

The GOBAR-DHAN scheme is the second type of subsidy scheme

The 2018 National Biofuels Policy strongly emphasises advanced biofuels, such as CBG. The Indian government launched the GOBAR-DHAN (Galvanising Organic Bio-Agro Resources) scheme to convert farm waste such as cattle dung and solid waste into CBG and compost. In 2018-19, the plan called for 700 projects to be funded around the country. The Swachh Bharat Mission-Gramin (SBM-G) will support the programme, provide subsidies and benefit households in identified areas via Gram Panchayats.

The Reserve Bank of India has classified CBG plants as a “priority sector” for lending purposes. The State Bank of India has already issued a policy to finance CBG subsidy projects, with other banks following suit. To promote organic farming in India and increase revenue from the sale of CBG plant bi-products like “fermented organic manure,” the Ministry of Agriculture has placed them in the Fertilizer Control Order, allowing organic manure to be sold across the country and during the complete process provide a subsidy.

Union CBG (Compressed Bio Gas) SATAT scheme

The plan will be available throughout India. The scheme’s key goals are as follows:

  • To create a sustainable and affordable transportation option. (SATAT).
  • To address the problem of dirty urban air caused by farm-stubble burning and carbon emissions and improve municipal solid waste management.
  • CBG (Compressed Bio Gas) is used to reduce reliance on crude oil imports.
  • Increasing farmer income, employment in rural areas, and entrepreneurship.

This programme aims to help fund the construction of compressed biogas (CBG) facilities through a single banking arrangement with our bank. The Eligible Entities (EE)/ Borrowers for this scheme are:

Entrepreneurs/ Technology Providers/ Sole Proprietorships/ Partnerships/ Limited Liability Partnerships/ Companies/ Cooperative Societies /PACS/FPOs/SHGs /other borrowers permitted by the Ministry of Petroleum and Natural Gas who have been awarded Letters of Intents (LOIs) by Oil Marketing Companies (OMCs) and Gas Marketing Companies (GMC) for the supply of compressed biogas under the SATAT Scheme.

Before applying for the loan, obtaining letters of intent from OMCs and GMCs is required.

According to the EoI, a single CBG plant’s minimum intended capacity is 2.0 tonnes per day of CBG.

Future Prospective of Compressed Bio Gas

Agricultural residue, municipal solid waste, sugarcane press mud, distillery waste wash, cow manure, and sewage treatment plant waste are biomass/waste sources used to make compressed bio-gas. Other waste streams that can generate biogas include rotten potatoes from cold storage, rotting vegetables from dairy facilities, chicken/poultry litter, food trash, horticulture waste, forestry residues, and processed organic waste from industrial effluent treatment plants (ETPs).

Compressed Bio-Gas networks can be linked with city gas distribution (CGD) networks in the future to increase supplies to household and retail customers in present and emerging markets. Compressed Bio-Gas can be put into CGD pipelines later, enabling efficient distribution and access to cleaner and cheaper fuel and retailing through OMC fuel stations.

Money Making From a Biogas CNG Project

Regardless of where you are in India, BIOGAS INDIA can assist you in building up a biogas CNG plant on your property utilising a double-layered biogas balloon. We offer the greatest biogas gear, the best design and layout for your biogas setup, and the most efficient running process to produce the highest bio CNG output. We train your employees on how to operate and maintain the biogas plant and provide ways for you to profit from the methane products you produce. Ready Market for Bio-CNG:

  • Cooking with raw biogas. However, it has a strong odour, making it unsuitable. The smell, however, can be eliminated by a method.
  • Biogas that has been refined for use in community kitchens and industrial boilers. This item is trendy.
  • Electricity is generated using purified and compressed biogas.
  • CNG is produced using purified and compressed biogas and stored in bottles. It’s suitable for use as car fuel.

Biogas slurry can be used to make organic fertiliser.

Summarised Words

In the not-too-distant future, one can convert the garbage into energy! Bio-gas and bio-manure can be produced from any amount of biomass. This will go a long way toward ensuring India’s energy independence and assisting in the fight against global warming and climate change. The Indian government is working to make India a Sasya-Syamala Bharat, a Sujala-Suphala Bharat by providing subsidies to start work quickly and making Indian people Atam Nirbhar.


In India, who are the enforcing agencies for the biogas programme?

The National Biogas and Manure Management Programme is being implemented by state nodal departments, agencies, and the Khadi and Village Industries Commission in Mumbai. It is administering the programme country-wide through its state offices.

What are the biogas program’s financial incentives?

The government is providing: (i) a central subsidy; (ii) a turn-key job fee with a five-year free maintenance warranty; (iii) financial support up to 50 per cent of the applicable CFA, subject to the beneficiary sharing 50 per cent of the cost of repair; (iv) training for users, masons, and entrepreneurs; and (v) administrative charges to State Government Departments and agencies implementing the programme.

How much do biogas plants get in terms of subsidies?

The central subsidy is granted predetermined amounts for different areas/states/regions classifications. It ranges from Rs. 4000 to Rs. 8000 per plant for general category states and Rs. 14,700 per plant for states in the northeastern region, including Sikkim, except in plain portions of Assam.

How much do biogas plants cost?

The price of a biogas plant varies depending on the place and size. A biogas plant with a capacity of 2 cubic metres costs around Rs. 17,000/- on average. It is often 30% higher in hilly terrain and 50% higher in the states of the North Eastern Region. For detailed information on the cost of the plant, read the article on the cost and potential of Bio CNG Plant in India.

How is the biogas programme managed?

A three-tier monitoring system is employed: I States’ nodal departments and agencies send monthly progress reports on biogas plant physical verification. Sample inspection Biogas Development Training Centres is the second level. Independent organisations are also doing evaluation studies.

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