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An investment of ₹1.75 lakh crore will be needed for setting up compressed bio-gas (CBG) plants across the country, Minister for Petroleum and Natural Gas Dharmendra Pradhan said on Monday.
Speaking at an event to mark the launch of the Sustainable Alternative Towards Affordable Transportation (SATAT), Pradhan said, “It is planned to roll out 5,000 compressed bio-gas plants across India in a phased manner in the next four years. This will require an investment of nearly ₹1.75 lakh crore.” Under the SATAT, public sector oil marketing companies (OMCs) have invited Expression of Interest from potential entrepreneurs to set up CBG production plants and make available CBG in the market for use in automotive fuels.
“This investment will be made by potential entrepreneurs. The OMCs will guarantee offtake for the bio-gas produced at ₹46 per kg exclusive of GST,” Pradhan added.
Currently compressed natural gas retails at ₹44.30 per kg in the National Capital.
“Similar to the solar sector, where initially a higher price was offered to solar power, the CBG will also be procured at a higher rate to incentivise entrepreneurs,” Pradhan said.
“There will be no restriction on the technology choice and the government is already incurring a capital expenditure of ₹75,000 crore for setting up infrastructure for City Gas distribution network. The bio-gas will have a ready market,” Pradhan said.
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