17

STANDING COMMITTEE ONPETROLEUM & NATURAL GAS(2022-23)
SEVENTEENTH LOK SABHAMINISTRY OF PETROLEUM & NATURAL GAS
Review of Implementation of CBG (SATAT)SEVENTEENTH REPORTLOK SABHA SECRETARIATNEW DELHI
19th December, 2022 /28th Agrahayana 1944 (Saka)

CP&NG NO.

SEVENTEENTH REPORTSTANDING COMMITTEE ONPETROLEUM & NATURAL GAS(2022-23)(SEVENTEENTH LOK SABHA)MINISTRY OF PETROLEUM & NATURAL GAS[‘Review of Implementation of CBG (SATAT)’]

Presented to Lok Sabha on 21.12.2022
Laid in Rajya Sabha on 21.12.2022

LOK SABHA SECRETARIATNEW DELHI
19 December, 2022 / 28th Agrahayana 1944 (Saka)

CONTENTSCOMPOSITION OF THE COMMITTEE (2022-23) ……………...
INTRODUCTION ......……………………………………………

(iii)
(iv)

REPORTPART - I
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
XIV.
XV
XVI
XVII
XVIII
XIX
XX
XXI

INTRODUCTIONCOMPRESSED BIO GAS (CBG)
CURRENT STATUS UNDER SATATCOORDINATION MECHANISMCHALLENGES IN SETTING-UP CBG PLANTSSINGLE WINDOW CLEARANCELETTERS OF INTENT (LOIS) FOR CBG PLANTS
BANKING ASSISTANCE TO CBG PLANTSCOLLATERAL SECURITY FOR CBG PLANTS
FINANCING FOR CBG PROJECTSCOST OF CBG PLANTS
PRICING OF CBGGAS SYNCHRONISATION SCHEMETAXATION STRUCTURE ON CBG INDUSTRYGST ISSUES IN CBG PLANTS
CENTRAL FINANCIAL ASSISTANCE TO CBG PLANTS
ROLE OF KVK, FPOS AND CHC IN CBG PLANTS
BIO-MANURE OFFTAKE ISSUESMARKET DEVELOPMENT ASSISTANCE FOR CBG
TRAINING AND MANPOWERRESEARCH & DEVELOPMENT
PART – II

Observations / Recommendations of the Committee .............
ANNEXURE I
ANNEXURE II
ANNEXURE III
ANNEXURE IV
ANNEXURE V
APPENDIX I

ANNEXURES
Minutes of the seventh sitting of the Committee (2021-22)
held on 05.01.2022
Minutes of the fifteenth sitting of the Committee (2021-22)
held on 08.06.2022
Minutes of the nineteenth sitting of the Committee (2021-22)
held on 28.07.2022
Minutes of the twentieth sitting of the Committee (2021-22)
held on 04.08.2022
Minutes of the Sixth sitting of the Committee (2022-23) held
on 19.12.2022
APPENDIXES
List of Operational CBG Plants

1
2
2
4
8
12
14
19
21
23
24
25
27
30
32
35
37
38
39
40
42

(iii)COMPOSITION OF THE STANDING COMMITTEE ON PETROLEUM & NATURALGAS (2022-23)
Sl. No.

Name of Members
LOK SABHA

Shri Ramesh Bidhuri - Chairperson
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

Dr. Ramesh Chand Bind
Shri Pradyut Bordoloi
Shri Girish Chandra
Smt. Chinta Anuradha
Shri Dilip Saikia
Shri Topon Kumar Gogoi
Shri Naranbhai Bhikhabhai Kachhadiya
Dr. Kalanidhi Veeraswamy
Shri Santosh Kumar
Shri Rodmal Nagar
Shri Mitesh Rameshbhai Patel
Shri Unmesh Bhaiyyasaheb Patil
Shri M.K. Raghavan
Shri Chandra Sekhar Sahu
Shri Gajanan Chandrakant Kirtikar
Dr. Bharatiben Dhirubhai Shiyal
Shri Janardan Singh Sigriwal
Shri Lallu Singh
Shri Vinod Kumar Sonkar
Shri Ajay Tamta
RAJYA SABHA
Shri Shaktisinh Gohil
Smt. Kanta Kardam
Shri Mithlesh Kumar
Shri Pabitra Margherita
Shri Rambhai Harjibhai Mokariya
Shri Surendra Singh Nagar
Dr. Sasmit Patra
Shri Subhas Chandra Bose Pilli
Dr. V. Sivadasan
Shri Ravichandra Vaddiraju
SECRETARIAT

12
3

Shri Y.M. Kandpal
Shri H. Ram Prakash
Shri Deepak Kumar

Joint Secretary
Director
Assistant Executive Officer

(iv)INTRODUCTION
I, the Chairperson, Standing Committee on Petroleum & Natural Gas having
been authorised by the Committee, to submit the Report on their behalf, present thisSeventeenth Report on the subject ‘Review of Implementation of CBG (SATAT)’.
2.

The Committee took briefing of the representatives of the Ministry of Petroleum &Natural Gas/PSUs, the Ministry of Finance (Deptt. of Financial Services and Deptt. of
Revenue), Ministry of Chemicals & Fertilizers (Deptt. of Fertilizers), Ministry ofAgriculture & Farmers Welfare (Department of Agriculture, Cooperation & Farmers
Welfare) and Ministry of New & Renewable Energy, Indian Biogas Association andentrepreneurs of CBG plants in connection with examination of the subject Review of
Implementation of CBG (SATAT) at their sittings held on

05.01.2022, 08.06.2022,

28.07.2022 & 04.08.2022.
3.

The Report was considered and adopted by the Standing Committee on

Petroleum and Natural Gas on 19.12.2022.
4.

The Committee wish to express their thanks to the representatives of the Ministryof Petroleum and Natural Gas/PSUs and other Ministries/stakeholders for placing theirviews before them and furnishing the information desired in connection withexamination of the subject.
5.

The Committee also place on record their appreciation for the valuableassistance rendered to them by the officials of the Lok Sabha Secretariat attached to
the Committee.

New Delhi;_19th December, 2022
28th Agrahayana, 1944 (Saka)RAMESH BIDHURI,
Chairperson,
Standing Committee on
Petroleum & Natural Gas.

CHAPTER-1
Introduction
India is one of the fastest growing economies in the world and energy availability
is a major component of the growth paradigm. Considering the domestic availability offuels and India’s import dependence in fossil fuels, India’s energy security will remain
vulnerable until alternative fuels to substitute/supplement petro-based fuels aredeveloped based on indigenously produced renewable feedstock. To address theseconcerns, Government has set a target to reduce the import dependency by 10 per centby 2022. Government has prepared a road map to reduce the import dependency in Oil& Gas sector by adopting a five-pronged strategy which includes, increasing Domestic
Production, Adopting biofuels & Renewables, Energy Efficiency Norms, Improvementin Refinery Processes and Demand Substitution.
1.1

In this regard, National Policy on Biofuels - 2018 aims to increase usage of

biofuels in the energy and transportation sectors of the country during the coming
decade. The Policy creates a synergy with the ongoing initiatives of the Government
such as Make in India & Swachh Bharat Abhiyan and offers great opportunity tointegrate with the ambitious targets of doubling of Farmers Income, Import Reduction,
Employment Generation, Waste to Wealth Creation. The scope of the Policy
encompasses ‘bio-CNG’ as a biofuel which can be used as transportation fuel or in
stationary applications. Bio-CNG has been defined as Purified form of bio-Gas whose
composition & energy potential is similar to that of fossil based natural gas and is
produced from agricultural residues, animal dung, food waste, MSW and Sewage water.
As part of initiative under the National Biofuel Policy, 2018, Ministry of Petroleum& Natural Gas has launched the Sustainable Alternative Towards Affordable
Transportation (SATAT) initiative in October, 2018 for promoting use of Compressedbio gas (bio-CNG) in the CNG (transport) and PNG (Domestic) sector of City Gas
Distribution (CGD) supplies of natural gas. SATAT was launched on 1st October 2018
aiming to establish an ecosystem for production of CBG from various waste/ biomasssources in the country. SATAT has envisaged developing 5000 CBG plants with total
CBG production capacity of 15 Million Metric Tonne Per Annum (MMTPA) i.e.
equivalent to 54 MMSCMD of gas by 2023-24. SATAT initiative offers a potential forinvestment of about Rs. 1.75 lakh crores (5000 Plants) and generating about 75,000

direct employment opportunity. This initiative synergizes with Swachh Bharat
Mission/COP-21/COP-26 commitments/ AtmaNirbhar Bharat.
1.2

Compressed Bio Gas (CBG) :Waste /Bio-mass sources like agricultural residue,
cattle dung, sugarcane press mud, municipal
solid waste and sewage treatment plant waste,etc. produce bio-gas through the process ofanaerobic

decomposition.

The

bio-gasisFig. 1 : Components of biogas

purified to remove hydrogen sulfide (H2S), carbon dioxide (CO2), water vapor andcompressed as Compressed Bio Gas (CBG), which has methane (CH4) content of morethan 90%.
1.3

CBG has calorific value and other properties similar to CNG and hence the same

can

be

utilizedasanenvironment-friendly

fuel

in

usage

of

transport&

industrial/commercial sector. Production of CBG would have multiple benefits viz.
reduction of natural gas import, reduction of GHG emission, reduction in burning ofagriculture residues, remunerative income to farmers, employment generation, effective
waste management etc. Further, bio manure is a coproduct of CBG production process
which contains micro and macro nutrients as well as organic carbon. The same can beutilized in agriculture sector to promote organic farming and reduce the uses ofchemical fertilizer.
Current Status under SATAT:
1.4

Oil and Gas Marketing Companies (OGMCs) viz. IndianOil, HPCL, BPCL, GAIL

and IGL have been inviting EoI from potential investors/entrepreneurs to procure CBG
for further selling to automotive and commercial customers. Oil & Gas Companies are
signing Commercial Agreements for 15 years for procurement of CBG, to be further
extended mutually. As per SATAT initiative, procurement price of CBG purified as per IS
16087: 2016 standards, compressed at 250 bar pressure and delivered to OMC Retail
Outlets in cascades was fixed at Rs. 46/kg + applicable taxes for period from 1.10.2018
to 31.3.2024. Minimum procurement price will not be lower than Rs. 46/kg + applicabletaxes up to 31.3.2029. Recently, due to rise in Retail Selling Price (RSP) of CNG andother factors, representation was received from CBG Plant owners to increase theprocurement price of CBG. Detailed deliberations were held with Oil & Gas Marketing
Companies and other stakeholders on SATAT scheme. Based on the discussions, Oil &Gas Companies had offered a revised procurement price of CBG which is indexed to
the CNG price. The details of the revised procurement price of CBG are provided
below:

The minimum procurement price of CBG will not be lower than Rs. 46/kg +applicable taxes for the period up to 31.3.2029.

The Retail Selling Price of CBG in a market shall be at par with RSP of CNG (asprovided by the authorized CGD entity).

1.5

In order to ensure offtake of CBG, MoPNG has issued guidelines forsynchronization of CBG in CGD network. The CBG –CGD Synchronization Scheme has
been successfully implemented on a pan India basis from 19.04.2021. At present, 24
Tripartite Agreements have been signed with various CBG producers and CGD entities
across the country for supply of Biogas/CBG to CGD networks.
1.6

In accordance with MoP&NG policy guidelines dated 26.10.2021, GAIL had

commenced supplies of APM/NAPM gas and Biogas to all CGD entities at the Weighted
Average Price. Subsequently, the MoP&NG policy guidelines dated 6.5.2022 has also
been implemented from 16.05.2022 for supply of pooled natural gas and Biogas to CGD
entities at Uniform Base Price.
Further, the procurement price of Biogas offered to CBG Producers under CBG –CGD Synchronization Scheme has been revised upwards to Rs 1082/MMBTU + taxes.
In addition, the Producers would receive compressions charges/pipeline compression
charges/transportation charges as applicable for the Biogas/CBG supplied.
1.7

Around 40 additional CBG plants are expected to be commissioned by March,2023.
Coordination Mechanism
1.8 The Committee desired to know the role of CBG in the objectives of the Natural
Policy in Biofuel in India to which MoPNG in their written reply have submitted thefollowing:“ The National Policy on Biofuels announced in the year 2018 by Governmentof India put thrusts on the productions of advanced biofuels such as 2ndGeneration (2G) Ethanol, Compressed Biogas (CBG), Waste to Fuels, Dropin fuels etc. through utilization of indigenous feedstocks. Further, Government

of India has set a target to increase the share of gas in the energy mix fromthe current about 6.5 per cent to 15 per cent in 2030 to make India a Gas
based economy. Augmentation of CBG shall help in achieving this target.
Production of CBG shall increase the green energy mix, reduce importdependence, create employment, especially in semi urban & rural areas andreduce pollution. This will create value and employment in the rural economy
across the supply chain from biomass collection to plant operation. CBG has
zero associated carbon emissions. Usage of CBG shall assist in achieving
climate change goals of India as per the Paris Agreement 2015/2022.
The production of CBG is in alignment with Government of India schemes like
Atmanirbhar Bharat, Make in India and Swachh Bharat. The CBG production
also be in alignment with GOBAR-DHAN Scheme to effectively utilize cattle
dung.

Feedstock

Tentative Feedstock
Requirement for production of 1
Ton CBG as per Conventional
Technology

Agriculture
Residue

10 tonPress Mud

25 tonSpent Wash

10 KL

Municipal
Solid Waste

20 tonCattle Dung

50 tonNapier Grass

10 tonThe various feedstocks of biogas are waste / bio-mass sources like agriculturalresidue, cattle dung, sugarcane press mud, municipal solid waste, etc.
The various feedstock wise CBG potential are as under: The above table is indicative and CBG production shall vary as per technology,
feedstock quality, etc.
So far 37 CBG/biogas plants have been commissioned under SATAT initiative.
Designed CBG production capacity of these plants is around 225 ton per day.
These plants are supplying their produced CBG from 51 stand-alone CBG Retail
Outlets; 12 Geographical Areas under CBG-CNG synchronization scheme andalso to industrial customers. List of CBG/biogas plants is at Annexure-I”.
1.9 The Committee sought to know the current share of bio-gas in the country and thetargets fixed by the Ministry to which MoPNG in their written reply have stated thefollowing:“Under the SATAT initiative the government envisages the setting up of 5,000
CBG plants with a production target of 15 MMTPA of CBG by 2023-24.
However, as on 1st August 2022, only 37 CBG/ biogas plants have beencommissioned. So far OGMCs have sold around 9000 tons of CBG. MoPNG iscontinuously coordinating with stakeholders to increase the production of CBG”.
1.10 Asked by the Committee as to whether any review has been conducted by the
Ministry regarding implementation of SATAT and if so, its major findings, the MoPNG in
their written reply, have furnished the following:“Periodic review meetings are being held by MoPNG and OGMCs on implementationof SATAT initiative. It has been observed that the CBG sector is still in developing stage
in the country. It needs to be supported with various fiscal incentive and policy
interventions. Major finding emerged during the review meetings with stakeholders are as
under:
a.
Considering the various environmental, social and economic benefits,enhanced focus is required to improve the production of CBG.
b.
Production of CBG is required to meet the incremental demand of the
Natural Gas in the country.
c.
Expeditious financing and lower interest and lower collateral is required for
propogation of CBG projects.
d.
Support of State Government is required to ensure long term supply of
biomass at a reasonable price.
e.
Biomanure is a coproduct and revenue stream of CBG projects. Assured
offtake of biomanure is required to improve viability of the projects.
f.
Assured offtake of entire quantity of CBG with long term agreement isimperative to attract investment in this sector.
g.
Allocation of land for CBG projects and biomass storage by the State
Government.
h.

Expansion of Pipeline infrastructure for injection of CBG in CGD network”.

1.11 The Committee enquired as to whether any technology for CBG production isavailable in the country to which MoPNG in their written reply have stated the following:“Waste / Bio-mass sources like agricultural residue, cattle dung, sugarcane press
mud, municipal solid waste and sewage treatment plant waste, etc. produce biogas through the process of anaerobic decomposition. The bio-gas is purified toremove hydrogen sulfide (H2S), carbon dioxide (CO2), water vapor andcompressed as Compressed Bio Gas (CBG), which has methane (CH4) content of
more than 90%.
There are various technologies available for production of CBG. Anaerobic
Digestion is used for the production of Biogas which includes technologies
like continuous stirred tank reactor (CSTR), plug flow, 2 stage reactors, Upflow
Anaerobic Sludge Blanket (UASB), etc.
Further, various technologies are used for removal of hydrogen sulfide, such as
Biological Fixation, Iron chloride dosing, Water scrubbing, Activated Carbon, Iron
Hydroxide or Oxide and Sodium Hydroxide etc.

Technologies used for removal of Carbon dioxide, are Pressure Swing Adsorption(PSA), Water Scrubbing, Membrane Separation, Chemical Scrubbing - Mono Ethyl
Amine (MEA), Di Ethyl Amine (DEA) Methyl Di-Ethyl Amine (MDEA) etc.
The gas is compressed through a compressor. Various national and global
technology providers are working in this field. Depending upon the requirement,
combinations of these technologies are being used by CBG project developers".
1.12 The Committee sought to know whether the oil PSUs can invest in setting up of CBG
Plants as part of their regular business operations to which the MoPNG in their written
reply have stated that:“Under SATAT initiative PSU Oil & Gas Marketing Companies (OGMCs) namely
IOCL, HPCL, BPCL, GAIL and IGL are inviting Expression of Interest (EoI) frompotential entrepreneurs to set up CBG plants and to procure CBG from them forsale as automotive & industrial fuel.IndianOil is working as National Coordinatorof SATAT initiative and GAIL is acting as Coordinator for synchronization of CBG
with CNG.Beside this role of OGMCs are:
1. Handholding of prospective entrepreneurs in technology, financing, statutory
approvals and other aspects to facilitate setting up CBG Plants.
2. Coordination with various Government Departments/Agencies; Financial
institutions; State Government and other stake holders to arrange and implement
various enablers for development of CBG sector.
3. Arrangement of CBG equipment through coordination and inviting Global
Expression of Interest for identification of technology providers and equipment
suppliers.
4. R&D work e.g.Indian Oil R&D Centre has developed IBG-Max, IBG-Plus and BioXceed technologies on CBG. IndianOil is finalizing offering of technology for
setting up of CBG Plants, inoculums for enhancing CBG production from CBG
Plants and additives for enhancing quality of Fermented Organic Manure.
5. To create awareness among entrepreneurs and investors.
In addition, OGMCs have planned to set up few CBG and Biogas Plants toencourage entrepreneurs for setting up CBG projects. Construction activities
are in progress at few places. Further, OGMCs are making investment on
installation of CBG dispensing equipment viz. Compressor, Cascade andDispensing Unit for marketing of CBG”.
“Oil PSUs have planned to set up few CBG and Biogas Plants as demonstration
projects. Some of them are as follows:

S
No.

Oil
PSUs

1

IOCL

2

IOCL

Location
Hingonia,
Rajasthan
Gorakhpur,
Uttar Pradesh

Feedstock
Jaipur, 100 TPD Cattle
Dung
200 TPD Paddy
Straw + 40 TPD

CBG /Biogasproduction
capacity
6-8 TPD
28 TPD

Status ofproject
Work inprogress
Work inprogressCattle Dung
Betul,
5 TPD Cattle Dung
Madhya Pradesh
Hoshangabad, Madhya
5 TPD Cattle Dung
PradeshGorakhpur,
5 TPD Cattle Dung
Uttar Pradesh

3

IOCL

200 m3/day Commissioned

4

IOCL

5

IOCL

6

GAIL

Ranchi, Jharkhand

150 TPD MSW

5 TPD
CBG

Work initiated

7

HPCL

Badaun,Uttar Pradesh

140 TPD biomass

14 TPDWork initiated1.13

In addition, Indian Oil is also in discussion with a German CBG Plant operator for
setting up agriculture residue to CBG Plants through a Joint Venture Company”.
The Indian Biogas Association (IBA) submitted the following representation on

200m3
/day

Commissioned

200 m3/day Commissioned

SATAT to the Committee:(i) Periodic upward revision of Bio-CNG/ CBG price by indexing it to the CNG
market price.
(ii) Creation of ‘Bio-gas-Fertilizer Fund” to provide credit guarantee and Generation
Based Subsidy (GBI) to this sector(iii) Building decentralized Bio-CNG gas grid infrastructure and integration with CGD
and national natural gas grid infrastructure.
(iv) Policy for injection of CBG to CGD and replacement of LPG cylinders under
UjjawalaYojna with bio-CNG under SATAT initiative.
(v) Introducing Policy for statutory mixing of CBG in the natural gas mix.
(vi) Creation of “Organic Fertilizer distribution and utilization Infrastructure” fordoubling farmers income.
Challenges in setting-up CBG Plants
1.14 The Committee inquired about the kind of risks associated with CBG plants towhich the MoPNG in their written reply have furnished that:“The following are some of the perceived risks of CBG Plants: (i) Lack of steady supply of feedstock at long term stable price.
(ii) Discontinuation of available subsidies viz. Central Financial Assistance by
MNRE(iii) Demand of CBG in the region and competition with other replaceable fuel(iv) Marketing of Bio manure (FOM/LFOM) at remunerative price”.
(v) The tentative Internal Rate of Return (IRR) of CBG projects is about 7-9%
(without CFA)”.
Submitting about the general problems being faced by CBG plant entrepreneurs and thekind of ecosystem required for the viability of the plant, the representative of M/s Verbio
Enterprises, during the oral evidence submitted the following:-

“The very fact that SATAT has a target of 5,000 plants until 2023, and less than
one per cent has been erected or under implementation, that means that there
is no gap but there is a fundamental disconnect over here as far as businesscase is concerned……….. There is also a very clear lack of understanding or
limitation of experience, in Satark, one size fits all is the approach. आप कोई भीवे लाएं , फूड वे , वे िजटे बल वे , एमएसड ू , ए ी वे , सभी को एक समान टीट िकयाजाता है. जबिक food waste is a revenue stream, MSW is a revenue stream for the
producer. ू िनसपैिलटी से छ: सौ से सात सौ पए टन ो ुसस को िमलता है । हम तीनहजार से साढ़े तीन हजार पए ित टन खच करना पड़ता है । मे रे िलए वह कॉ है, तो िकसीके िलए वह रे वे ू है । फूड वे और वे िजटे बल वे वाला ादा क े न नही ं करे गा, because
if I am their side, I would also not complain. I don’t want to pinpoint anybody but
this is the gaps we are having. बल बिनग की ब त ॉ म है , अगर हम यह फंडामटल
पॉइं ट नही ं समझगे , तो यह सॉ नही ं हो सकता है। Differential pricing, feed stock-based
pricing हम करनी पड़े गी या िकसी तरह से ो ुसर को वह कॉ नसे ट िकया जाए। म परालीके िलए जो खच कर रहा ं , तीन हजार से साढ़े तीन हजार पए हमारा लडे ड, ॉम फाम टूफीड है । यह िसफ कले न कॉ नही ं है। हमने इसम पूरी कॉ इं ूड की है , जो मुझे सालभर ोर करना है, उसे बचा कर रखना है , कवर करना है, हम ने अपने ां ट म वे दर े शनलगाया है । ोंिक म िडलेवल वे दर मॉिनट रं ग पर िडपड नही ं कर सकता ं , ोंिक मु झेअपने ां ट के लोकेशन पर पता होना चािहए िक िकस िदन बा रश होने वाली है । जै से आजकल-परसों, we have the rain probability of 80 to 100 percent, that means, I haveto keep them covered. हम अनकवर भी करना पड़ता है , अगर मॉ चर हाई होता है , तो हमउसे सू खने का मौका भी दे ना पड़ता है । अनकव रं ग-कव रं ग मैकेिन हम पूरा मैनेज करता ह।
Feed stock is very complex thing. ब त कॉ लैहै। हम इसकी मैनेजमट ब त ानसे करनी पड़ती है । पू रा ोरे ज इं ार और जो पूरा ोटे न है , वह हमारा है। हम े टऔर सटर से कुछ नही ं िमलता है । हमारा ां ट 20 एकड़ की जमीन पर है । इसके अलावा हमने40 एकड़ satellite storage locations की है। अभी हमारा ां ट फुल कैपेिसटी पर नही ं है ।हमारा ां ट िसफ 25 ितशत कैपेिसटी पर है। जब यह 100 ितशत कैपेिसटी पर आएगा, तोमुझे लगभग 80 एकड़ से सौ एकड़ जमीन चािहए होगी, िजसम पराली ोर होगी और यहइसको फीड करे गा।जो एमएनआरई की तरफ से जो था, वह एकदम से बीच म िडसकू करिदया गया है, जब हम ने इं वे कर िदया, this assistance was withdrawn. अभी सु नने कोिमल रहा है िक यह अ ूव हो गया है और इसको दोबारा रीइं े ट करगे , लेिकन मुझे इस चीजकीै रटी नही ं है िक जो ां ट इस दौरान बने ह, वे इसके िलए ऐ केबल रहगे या नही।ं
That is not clear.
The next very major point is, हम यह चीज ब त अ ी तरह समझनी पड़े गी, यहइं िडया का केस नही ं है, यह व वाइड है िक यह ोड अपने दम पर कमिशयली खड़ा नही ंहो सकता है। इसके तीन रे वे ूीम चािहए। सबसे पहले gas-crafted, जो हमारा
आईओसीएल के साथ है, that is a good arrangement. Second is bio manure. अकेलागैस पर इसकी कमिशयल वायिबिलटी नही ं है। यह िसफ िह दु ान म नही ं है , हर जगह यहीहै । Bio Manure is carbon rich product. हमारी सॉयल के िलए यह ब त अ ा ोडहै । म आपको उदाहरण दे ता ं । जमनी म एक ब त ही िस ल पॉिलसी है, जो अपनी जमीन सेिलया है , आपको उसे वापस करना है ।

…….. there is no provision for offtake of biomanure. छ: सौ से साढ़े छ: सौ टनितिदन, अगर इतने वॉ ूम म फुल कपैिसटी म जेनरे ट होगा, तो आप सोच सकते ह िक इसकेिलए हम िकतना ोरे ज ए रया चािहए होगा, इसके साथ ही इसके हडिलंग की व था भीकरनी होगी। यह इसका एक मेजर पॉइं ट है , जो अभी हमारे केस म तो सॉ नही ं आ है । 27मई को एक िमिन ी ऑफ केिमकल एं ड फिटलाइजर से एक नोिटिफकेशन आई थी, िजसमयह मैनडे ट िकया गया है िक fertilizer companies have been mandated to offtake
this manure. But that notification does not detail any implementation िक िकसाइस पर जाएगा, ा लॉिजरहगे, उसम कुछ नही ं है। कौन-सी क िनयाँ ह, कब से वहइफेम आ गया, so, there is no clarity. At the moment, this manure which is avery rich product as far as carbon is concerned is just lying on our locations”.
1.15 When the Committee asked about any successful CBG Plant model that can be
replicated, the representatives of M/s Ever Enviro during the oral evidence submitted
that:“..... हमने एिशया का कूड़ा वेां ट, जो हमारा वेट वे होता है, इं दौर म लगाया औरितिदन 17 हजार केजी बायो सीएनजी ो ूज कर रहे ह, िजससे िक इं दौर शहर की 400
बसे स ितिदन चल रही ह। जहां तक कूड़े की बात है, यह माडल स ेसफुल है । हम अबनलोकल बॉडी इं दौर ू िनिसपल काप रे शन को ढाई करोड़ पये ितवष राय ी दे रहे ह।हम ढाई करोड़ पये ितवष रॉय ी दे रहे ह, हम एक भी पैसा अबन लोकल बॉडी सेनही ं िमल रहा है । हमारा जो बायो सीएनजी मॉडल है, िजसे माननीय धान मं ी जी ने जबसेइनॉ े ट िकया है, तब से आज तक 72 दे शों ने इस मॉडल को ए े िकया है। व बक सेलेकर आईएफसी तक ने इसे ए े िकया है । म एक स ेसफुल मॉडल की बात कर रहा ं ।जै सा िक मने बताया िक हम लोगों को 100 ां ट्स को वष 2025 तक ऑपरे शनल करकेिदखाने का मैनडे ट िदया गया है और उस कड़ी म हम कूड़े केांट्स लगा रहे ह। िद ी मऑलरे डी एक ां ट बन रहा है, भोपाल म बन रहा है, उ र दे श म 16 ां ट्स आ रहे ह।ए ीक चर वेके हमारे 11 ां ट्स पंजाब म पराली के ऊपर बन रहे ह, जो अगले साल जूनतक ऑपरे शनल हो जाएं गे । हम उ र दे श, कनाटक तथा अदे शों म जो शु गर िम सेिनकलता है , उसके िलए े स मड के भी ां ट्स रहे ह।सर, इसके अलावा माननीय धान मं ी जी ने जो गोवधनीम अनाउं स की, उसकेबेिसस पर भी हम कैटल डं ग को भी यूज कर रहे ह और साथ ही साथ एनज ॉप हेतु साउथइं िडया म हम ां ट्स लगा रहे ह। हमारा मैनडे ट यह है िक 80 लाख टन काबन डाई ऑ ाइडका एिमशन करने से हम रोकगे और कॉप-26 म हमारे धान मं ी जी ने जो किमटमट िदया है ,उसम हम ब त बड़े भागीदार ह। आज जब हमारे 100 ां ट्स चलगे , तो उससे 75 हजार लोगोंको रोजगार िमलेगा और 10 करोड़ लोगों को एिमशन से डायरे ली या इनडायरे ली फायदा
होगा। यह एक bird’s eye view है। इं दौर म 15 एकड़ ां ट, िजसका माननीय धान मं ी जीने 19 फरवरी को उद् घाटन िकया था। जब ां ट का कॉन चल रहा था, तब आदरणीय ीधमधान जी ने भी िविजट िकया था। अगर हम दे ख तो 5 हजार ोजे ् स लगाने का जोटागट है, वह पॉिसबल है । इसम कोई डाउट नही ं है। आज की डे ट म जो ाइिजं ग मैकेिनज् म दीगयी है , we put our record िक पीएनजी ने और िडं ग कमे टी के िलए we put ourappreciation िक इस मैकेिनसे ोजे ् स से वायबल ह, लेिकन जैसा िक हमारे कुलीग नेबोला िक जो पॉिलसीज बनाई गई ह, उनका इ ीमटे शन ाउं ड पर नही ं हो रहा है ।

.....सर, ओवरऑल म यह कहना चाहता ँ िक ऑलरे डी सब पॉिलसीज ह, दे आर इने स, उनका ाउं ड म इ ीमटे शन होना ज री है। यह िदन दू र नही ं है िक सचमुच वष 2023
तक 5 हजार ां ट्स का सपना ज र साकार होगा। हम इसम स म ह। हम लोग इस बात केिलए ह और हम आगे से आगे इिनिशएिटव लगे। ध वाद”।
1.16 Elaborating on the future and possibility of achieving CBG production as envisaged
in the SATAT and the steps required for the same, the representative of the Indian Biogas Association made this following submission during the oral evidence:“हम िडसटलाइ गैस फी ् स की बात कर रहे ह। हम यह चाह रहे ह िक पू रे िह दु ान केअं दर पेटोिलयम गैस का स ी ूशन, टू ए वै री गुड ए टट, हम इसम दे पाएं । हमने इस नातेकहा है िक ये िडसटलाइगैस फी ् स होंगे। तमाम सद ों ने जो-जो सम ाएं बताई ह,उनका इसम समावे श होगा। म यह कहना चाह रहा ं िक यह एक बायो रफाइनरी होगी। जै सेउसम हमने यह कहा, म कोट करता हॅूं िक यह िसफ बायोगै स ां ट नही ं है , यह बायोगैसफट लाइज़र ां ट भी है । यह साथ म ए केवजर है । सर, हम िकतनी भी तर ी कर ल, अगरहमको साफ-सफाई याभारत िमशन के अं दर सारे वे को िड ोज़ करना है, िजससे हमथ रह सक तो wet and loose leafy bio-mass, only one technology is there
which is affordable even today and it is doable technology. Nothing is to beimported. वह बायोगै स टै ोलॉजी है । तो यह scavanging का काम करे गा। हम पॉ ुशनकी बात करते ह, पॉलयुशन एबे टमट की बात करते ह, एनवायरमट डली की बात करते ह,पीएम ने जो किमट िकया आ है, उसम िकतने पसट तक हम इसे कर सकते ह, लेिकन उसकेिलए हमको नए िसरे से , अ े तरीके से इं िट ेिटड तरीके से सोचने की ज रत है । सर, इसमहमने जो बात िलखी,ं पहले जो टाइटल इटसेहै, उसम हमने तमाम श ों का समावे शइसीिलए िकया है तािक एक ही टाइटल म यह पता लग जाए िक ा- ा इसम इन ू िडड है ।हम इससे कैिमक बना सकते ह। एक समय आएगा, अगर पैटोिलयम म काफी कमी आई तोहमको कैिमक के िलए बायो रसोसज़ पर वापस जाना पड़े गा। वे सारे कॉ े हम अभी शुकर सकते ह, टे कर सकते ह। सर, यह दे ख इस वाले को, बड़ी िविच बात है िक हम सबसेनए से र ह, हमारे पास कोई सपोट नही ं है, हमारी कोई इं ड ी नही ं है, लेिकन जो दाम हमकोिदया जा रहा है , इसको अभी एक-दो लोग कह रहे थे िक बढ़ा बिढ़या है । ज़रा तु लना कर लेते ह।यहां पर हम जो ाइस दी जा रही है , इथे नॉल की कैलो रिफक वै ू , बायोसीएनजी कीकैलो रिफक वै ू से हाफ है, लेिकन इस टे बल म दे ख उनको हमसे ढाई गुना ादा पैसा िदयाजा रहा है , लेिकन हीट वै ू हमसे आधी है तो करीब चार गुना पैसा हम इनको ादा दे रहे ह।हम ों नही ं िदया जा रहा है? जो सीएनजी के साथ हम क ीट करते ह, िजसम सैकड़ों सालोंसे तमाम दे शों ने, टै ोलॉजी ने, हमारी इं िडयन ऑयल क नीज़ ने, िजसम भारत सरकार नेइनवे िकया है, इतना बड़ा इ ार खड़ा िकया है, तब जा कर आज की तारीख म हमसीएनजी को इ ोट कर के, कुछ डॉमे क ो ूज़ कर के इस लैवल पर दे पा रहे ह। हमारे
वाले सै र के िलए वह इनवे मट कहां से आएगा? जब तक वह नही ं आएगा यह खड़ा नही ंहोगा। अगर यू े न और ईरान जै सी लड़ाई हो गई तो हमारे िडफस के िलए, जो े टेिजक वै लर ायरमट है , वही अवे लेबल नही ं होगा। लेिकन अगर हम डीसटलाइज़ गैस बना रहे ह,बायोमास बे ड, वह े टेिजक ू ल हम इसम पा सकते ह, अदर दै न ए लॉयमट और सब जोआ वह तो होगा ही होगा, उसको तो हम िडनाइ ही नही ं करते ह, लोकल लैवल परडीसटलाइज़ लैवल पर। सर, इसम पाएं िक हमको सबसे पूअरे कैटे गरी म रखा गया है । 1.04
हम दे रहे ह और दू सरों को ढाई दे रहे ह या िकसी को कुछ दे रहे ह। आ खर ऐसा ों?

......उसम यह है िक टै ोलॉजी सकी mixed fuel feeding and not single fuel feeding.
Today, those options are there and that is where technologies’ intervention will
also be required. It is not so simple. तो कभी िसफ पराली के बेस पर हम नही ं कर सकतेह। आगे हमने ाइस म कहा है अभी जो ाइस सतत म िमली ई है, वह भी इ ोंने कम केकरके आं का आ है । वह िसफ कैटलडं ग और काओमै ोर के ऊपर जो ाइस आ सकती है,उस पर इ ोंने िफ िकया है ।........ सर, ‘इं टरवे शं स नीडे ड’ म हमने यह कहा िक हम लॉ करगे। तमाम िमशलॉ हो गए। बायोमास िमशन, िजसम जला दगे , वह भी लॉ हो गया। ब त सारे िमश लॉहो गए। यहां तक िक ‘भारत’ िमशन भी लॉ हो गया। जब हम मं ालय म थे, वष 2008से हम यह कहते आ रहे ह िक हमारे िलए बायोगैस फिटलाइज़र िमशन आप बना दीिजए। पतानही ं लोगों को ा तकलीफ है िक आज तक बायोगैस फिटलाइज़र िमशन नही ं बना। खै र, अभीहमने उसे थोड़ा-सा मोिडफाई िकया है िक अब हम उसको बायो- रफाइनरी िमशन लॉ करगे ।पेटोिलयम एवं ाकृितक गै स मं ालय की जो बायो- ू एल पॉिलसी है , वह केवल िल ड ूएलऔर गैिसयसू एल की बात करती है। एम.एन.आर.ई. की जो बायो- ूएल पॉिलसी थी, वहकेवल िल डू एल की बात करती थी। अभी भी बायो- ू एल पॉिलसी म सॉिलडू एलइ ूडेड नही ं है । हम यह कह रहे ह िक solid fuel, liquid fuel and gases fuel and allthese three types of fuels are available through our biomass resources”.
Single Window Clearance
1.17 Various statutory approvals required for setting up CBG Plants, aredetailed

asunder: 1. Change in Land Use (applicable for non-industrial land)
2. District Industry Centre registration
3. NOC and Licence from Fire Department
4. NOC and Licence from Health & Safety
5. Approval fromDistrict Town & Country Planning
6. Approval from Local Panchayat
7. Plant running licence fromBlock Development Officer
8. Consent to Establish & Operate from Pollution Control Board
9. Consent to Establish & Operate from Petroleum and Explosives Safety
Organization, etc.
The above list may vary as per State specific requirements. Many approvals
are required before setting up of the Plant. (LOP Q7)
1.18 The Committee enquired about the role of various Ministries in the implementationof CBG Plants and steps being envisaged by MoPNG for coordinating with other
Ministries and Agencies, the Ministry in their written reply have submitted that:“Ministry of Petroleum and Natural Gas is coordinating with various ministries tocreate enabling ecosystem for CBG projects under SATAT initiative. MoPNG has
conducted many meetings with stakeholder Ministries as and when required andwritten number of letters to them. With the rigorous efforts of MoPNG and its
PSUs Dept. of Agriculture & Farmer Welfare (DA&FW) has included bio manure
produced from CBG plants as Fermented Organic Manure (FOM) and Liquid
Fermented Organic Manure (LFOM) under Fertilizer Control Order; RBI has
included CBG projects under Priority Sector Lending; CPCB has categorized
CBG projects under ‘White Category’ on case to case basis; MNRE has provided
list of institutes for technology evaluation and validation of Detailed Project
Reports; Canara Bank has been nominated as the lead bank for CBG activities.
Further, this Ministry is coordinating with MNRE for continuation of Central
Financial Assistance scheme under Waste to Energy Programme; DA&FW topromote FOM/LFOM; Department of Fertilizer to seek Market Development
Assistance and assured off-take of Bio-manure; Dept. of External Affaris forexternal financial assistance; Department of Expenditure for continuation of CFA
of MNRE; Department of Revenue to resolve tax related issue in CBG blended
with CNG; MoHUA for MSW based CBG projects; DHI to promote manufacturingof CNG/CBG vehicles.”1.19 The Committee sought to know the efforts by MoPNG to coordinate with
State Governments, urban municipal bodies, local bodies, etc. in setting up of CBG
plants under SATAT scheme to which the Ministry in the written reply have furnished
that:“MoPNG has sought support of State Governments through various letters andseries of meetings. MoPNG has requested various State Governments to form
Coordination Committee for effective implementation and monitoring of SATAT
initiative. At present, State Level Coordination Committees have been formed in
the State of Haryana, Punjab, Uttar Pradesh, Chhattisgarh and Andhra Pradesh
to discuss and create ease in statutory approvals and regulatory clearances for
CBG Plants. IndianOil has posted Nodal Officers in State Capitals to assist CBG
Plant owners and facilitate clearances”.
1.20 The Committee desired to know the response so far from State Governments,
Urban Municipal Bodies, Local Bodies, etc. towards setting up of CBG plants under
SATAT scheme to which the MoPNG in their written reply have furnished that: “State Level Committees have been constituted for implementation andmonitoring of SATAT initiative in States of Haryana, Punjab, Uttar Pradesh andChhattisgarh. Government of Haryana has notified biomass clusters in the state
to enable steady supply of biomass.
OGMCs have been coordinating with various Municipal Bodies, Local Bodies,etc. and some of them have responded positively for putting up CBG plants intheir jurisdictions.
Assistance is required from State Governments, Municipal Bodies, Local Bodies,etc. to ensure larger deployment of CBG Plants. For the same, following enablers
are requested from State Governments: 1.
Encourage use of Municipal Solid Waste, Sewage Treatment Plant Waste,
Press Mud and Bagasse etc. for production of CBG.

2.
Creation of robust biomass and waste supply chain with policy to ensure
steady supply of Biomass at sustainable long-term price.
3.
Providing subsidies on biomass aggregation & storage equipments under
Sub Mission on Agricultural Mechanization (SMAM) Scheme.
4.
Creation of enabling ecosystem for marketing and application of Biomanure (FOM/LFOM).
5.
Removal of double taxation on CNG sales through CBG outlets and viceversa (CBG is under GST and CNG is under VAT).
6.
Promotion of CBG / CNG vehicle in locations with upcoming CBG plants
and conversion of existing vehicle & tractors into CBG/CNG”.
1.21 The Committee enquired about any scheme for allotment of land for setting up a
CBG plant to which the Ministry in the written reply have furnished that:“This Ministry has requested various State Government to allocate land for CBG
plant and for storage of biomass. OGMCs are also taking up the matter with state
Government as per requirement. IndianOil has nominated Nodal officers at
various states to facilitate LOI holders in dealing with various local authorities foracquiring land”.
1.22

The following are some of the similar schemes like SATAT:-

1. GOBAR-DHAN Scheme by Department of Drinking Water & Sanitation promotes
conversion of bio waste to ensure cleanliness which includes IndividualHousehold, Community, Cluster and Commercial CBG projects.
2. Scheme for Energy from Urban, Industrial and Agricultural Waste/ Residue by
Ministry of New & Renewable Energy) provided Central Financial Assistance(CFA) for setting up CBG Plants. The CFA scheme was valid up to 31.3.2021.
SATAT initiative promotes entrepreneurs to set up CBG Plants with off-take andmarketing of CBG by Oil & Gas Marketing Companies.
1.23 The Committee wanted to know whether MoPNG has conducted any meetings
with Industry Bodies, Association of Industries for promotion of CBG plant to which the
MoPNG in their written reply have stated that:“Number of meetings at Ministry level as well as at industry level have been
conducted with Indian Sugar Mill Association (ISMA), Federation of Indian
Chambers of Commerce & Industry (FICCI), Confederation of Indian Industry(CII), Associated Chambers of Commerce and Industry of India (ASSOCHAM)
and other Industry bodies to promote CBG. Meetings have also been held with
State Level chapters of the Industry Associations to create awareness on CBG”.
Letters of intent (LoIs) for CBG Plants
1.24

When the Committee sought details about the number of LoIs issued under
SATAT by OGMCs the following information was furnished (Background note
06.06.2022):-

CBG plant
NumberCompanyof LOIsissuedLand

Financial

Finalized

Closurecommissioned/sale initiated(No. of CBG
Plants)

CBG

CBG salesaleinitiated

initiated(No. of(No. of

CBG

Retailinjection

Outlets)

points)

IOCL

2249

156

37

18

31

0

BPCL

299

37

7

7

12

0

HPCL

413

64

28

3

1

0

GAIL

255

45

18

6

1

1

IGL

47

26

7

1

0

1

Total

3263

328

97

35

45

2

1.25 The Committee wanted to know the reasons for delay in commissioning of plants
as the number of applications is 3263 and only 35 have been completed to which the
MoPNG in their written reply have submitted that:1. “Since the launch of SATAT initiative, initially the investor sentiment was slow
because of lack of familiarity with the sector which delayed financial closure.
After that, due to advent of COVID-19 pandemic, entrepreneurs setting up CBG
Plants were affected to a great extent which delayed the setting up of CBG
Plants. Now it is picking up momentum. So far 16 Plants have beencommissioned and initiated supply of CBG. 37 more Plants are in various stagesof construction.
2. In addition, setting up of CBG Plants have been constrained due to various
factors including lack of availability of biomass/ waste at reasonable price on longterm basis, non-extension of Central Financial Assistance by Ministry of New &Renewable Energy, lack of low-cost financing for CBG Plants, lack of enablers
from State Governments, issues in marketing of Solid & Liquid Fermented
Organic Manure, etc.
3. For development of CBG sector in the country following enablers are requested:a. Arrangement of low-cost financeb. Extension of CFA scheme of MNRE
c. Market Development Assistance for Bio manure marketing; Benchmark
pricing and assured off-take of bio manure by Department of Fertilizer
d. Creation of robust biomass supply chain to ensure sustainable supply at areasonable price.
e. Resolving of issue of double taxation on sale of CBG from CNG RO andvice versa as well as CBG blended with CNG”.

Some of the enablers required to improve the conversion rate of LoIs are as
under:i. Financing of CBG projects: Because of thin margin and risk perceived, banks
and financial institutions are sceptical about CBG projects. Low-cost funding at
lower collateral is imperative for expeditious development of this sector. Further,risk sharing facility along with credit guarantee scheme need to be introduced to
improve the availability of finance at lower interest rates and lower collateral.
j. Bioamss/feed stock supply chain: Support of State Government is required toestablish biomass to ensure availability of feedstock at an assured price on longterm basis. State government should provide subsidies on biomass aggregationequipment; notify biomass clusters for CBG plants; engage Farmers Producers
Organizations/ Custom Hiring Centres (FPOs/CHCs) etc. for aggregation andstorage of biomass in the catchment areas of CBG plants and provide them
incentive on operative expenses of biomass equipment; State Government
should also encourage production of CBG from other feed stocks such as press
mud, MSW, sewage water etc.
k. Bio manure Marketing: At present there is no established mechanism for offtakeof biomanure (FOM/LFOM) which is a major co product and revenue stream for
CBG plants. Department of Fertilizer has been requested to provide Market
Development Assistance on sale of FOM, fixing of benchmark price and suitable
modalities for mandatory offtake of FOM by fertilizer companies. ICAR, State
Agriculture Universities, Research Centres, KVKs etc. should take up research,demonstration and extension activities for promotion of FOM/LFOM among
farming community.
l. Physical incentive: Central Financial Assistance (CFA) by MNRE is one of the
major incentives/subsidies for setting up of CBG plants. However, thecontinuation of the CFA beyond March 2021 under Waste to Energy Programmeof MNRE is still pending. MNRE may issue the notification and guidelines forcontinuation of CFA.
m. Assured Offtake of CBG: OGMCs are signing long term commercial agreementfor offtake of CBG. Government has issued the guidelines for co-mingling ofdomestic gas with CBG for CNG (T)/PNG (D) segments of CGD network tofacilitate offtake additional quantity. Further, State Government should promote
CNG/CBG vehicles and tractors to enhance consumption of CBG.
n. Land: Expeditious allocation of land to CBG producers by the State Government
would be helpful in developing CBG Projects.
o. Issue of double taxation: Exemption of Central Excise Duty and VAT or bringing
NG/CNG under the ambit of GST to solve the problem of double taxation when
CBG is comingled and sold in CNG(T) and PNG(D) sectors.
Other Enablers: State Specific subsidies on CBG Plants during initial phase;
Facilitate entrepreneurs in obtaining necessary permission / registration /approvals etc. for establishment of CBG plants; Single window clearance
towards CBG Plants; Courses on CBG technology, feedstock management,
manure enrichment, marketing, O&M in State universities / technical institutes/ Agricultural institutes”.

1.26 The Committee further enquired whether any duration for validity of Lol has been
fixed to which the Ministry in the written reply have stated that:“Yes, OGMCs have fixed the period of validity between three months to two
years from the date of issuance of LOIs. Beyond that the extension is being
given on case-to-case basis”.
1.27 The Committee sought to know the mechanism and criteria followed by Oil PSUs for
issue of Lol to which the Ministry in the written reply have submitted that:“Entrepreneur has to apply EOI (Expression of Interest) online on the website ofchosen respective OGMC. Qualification criteria has been fixed by OGMCs and isavailable in the EOI floated. The evaluation methodology adopted by
OGMCs (IOCL, HPCL, BPCL& IGL) is given below. The EOI applicants have toobtain 35 marks to qualify for obtaining LOI under SATAT initiative.
S.No.

QualificationCriteria(i)

Number of Years’Experience of the Firm in any sector
As on date of applicationa)More than or equal to 5 yearsb)More than or equal to 2 years, but less than 5 yearsc)Less than 2 years(ii)

Past Experience in preceding 10 years (As on date of application)
project execution including supply, installation, commissioning
Facilities to produce biogas or past experience in any other proje
workingenergy/healthcare/social/welfare/infrastructure/power/biomass/transpoa)Minimum 1 project with investment between
each

INR 5 – INR 10 crob)

Minimum 1 project with investment between INR2–INR5 Crore eachc)Minimum1project with investment between INR1–INR2 crore eachd)Minimum1project with investment of upto INR1 crore(iii)

Turn over(Average of last 3 Financial years as per audited balancsheet)a)More than or equal to INR 5 croreb)More than or equal to INR 3 crore, but less than INR 5 crorec)More than or equal to INR 1 crore, but less than INR 3 crored)Less than INR 1 crore(iv)

Technical competencies & tie-upsa)Possessing in-house technical know-how/Tie up with technolog
provider on digesterb)Possessing in-house technical know-how / Tie up with technolog
provider on purification systemc)

Possessing in-house technical know-how / Tie up with technolog
provider on compressor

On receipt of EOI, OGMCs evaluate the details submitted and award LOI tosuccessful applicants”.
1.28 The Committee desired to know whether Ministry has held any meeting with Lol
holders about the reasons for not starting the project to which the MoPNG in theirwritten reply have furnished that:”MoPNG and OGMCs have conducted meetings with LoI holders on the progressof the CBG projects. OGMCs have deputed dedicated team of officers tocoordinate with LoI holders. Based on inputs received from LoI
holders/entrepreneurs various enablers like assured price for offtake of CBG withlong term agreements by OGMCs; inclusion of bio manures produced from CBG
plants as Fermented Organic Manure and Liquid Fermented Organic Manure
under Fertilizer Control Order 1985; inclusion of CBG projects under ‘White
Category’ by CPCB; inclusion of CBG projects under Priority Sector Lending by
RBI;loan products from various Banks for financing of CBG projects have been
provided. In addition, MoPNG has issued policy guidelines for co-mingling of
CBG with Natural Gas in CGD network to facilitate marketing of CBG. Further,
MoPNG is regularly coordinating with LoI holders to resolve their issue and toencourage development of CBG projects”.
1.29 The Committee wanted to know whether Sugar Mills have been roped in to set up
CBG plants as adequate feedstock may be available with them to which the MoPNG in
their written reply have stated that:“Meetings/conferences has been held with Indian Sugar Mill Association (ISMA)
to create awareness among sugar mill owners to set up CBG Plants. Meeting
was held with sugar industry & Indian Sugar Mill Association (ISMA) on
22.1.2019 to provide details on SATAT initiative to sugar mills. A conference on
CBG for sugar mill owners was held in Meerut, Uttar Pradesh on 5.10.2021 topromote setting up of CBG Plants. In addition, regular interactions are held
through various Biofuels and Ethanol forums with Sugar Mill owners toencourage them to set up CBG Plants.
Based on the various interactions, 9 CBG Plants using sugarmill press mud as
feedstock have been commissioned under SATAT initiative. Various other CBG
Plants are under construction / being planned on press mud/spent wash-based
feedstock”.
Banking Assistance to CBG Plants:1.30 The Committee discussed difficulty in getting institutional credit facility for CBG
projects and sought desirability of bringing a credit guarantee scheme for the CBG
sector to improve the performance of SATAT scheme to which Department of Finanical
Services (DFS) in their written reply have submitted that:“CBG Projects are being considered for finance by Banks and provided financeafter techno-commercial appraisal based on their viability. Nevertheless,availability of Credit Guarantee Schemes for CBG financing mayprovide
additional comfort to banks and help in enhancingflow of credit to CBG projects.
Credit Guarantee scheme is administered by the concerned Ministry/Department
implementing the loan/credit scheme. A few examples of such schemes vis-à-vis
their credit programme and governing Ministry/Department are tabulated below.
Credit Guarantee
Loan/Credit
Ministry/Departme
SchemeSchement

CreditGuarantee

Loans

to

MinistryofMicro,

Fund

Trust

for

MSME

Small and Medium

Micro and Small

SectorEnterprises

Ministry of FinanceEnterprises
CreditGuarantee

PradhanFundfor

MantriMicroUnits (CGFMU)

Mudra
Yojana(PMMY)

CreditGuarantee

Skill

Fund

for

SchemeDevelopment

Skill

Loan

Ministry

of

Skill

Development

andEntrepreneurship

(CGFSSD)

CreditGuarantee

Fund for Education

Education

Ministry of HRD

Loans

Loans (CGSEL)
Loan

Guarantee

Loans

Schemeforthetourism

Covid

affected

sectorTourism

ServicetoMinistry of Tourism

Sector(LGSCATSS)
1.31 The Committee desired to know whether Reserve Bank of India has included CBG
Projects under priority lending and if yes, how much loan has been disbursed to projects
under SATAT by the Indian Banking Sector to which DFS in their written reply havesubmitted that:As per extant guidelines of Reserve Bank of India (RBI) on Priority Sector
Lending (PSL), loans for Agriculture Infrastructure category subject
toanaggregate sanctioned limit of Rs 100 crore per borrower from the banking
systemis classified under Priority Sector. Agriculture Infrastructure,inter-alia,
include:(i) Loans for construction of oil extraction/processing units for production of
bio-fuels, their storage and distribution infrastructure.
(ii) Loans to entrepreneurs for setting up of Compressed Bio Gas (CBG)
plants”.
Details of Loan Disbursed Under CBG Projects by Banks.
Project Sanctioned

Disbursed

NoofAccounts

Amountin croreAmtincroreas18.08.2022

13

169

185

on

1.32 The Committee desired to know the rate of interest of scheduled commercial banks
for priority sector lending to which DFS in their written reply have submitted that:-

“The rate of interest (RoI) charged on priority sector loans by banks has been
deregulated, as per directives issued by Department of Regulation (DoR), RBI.
As RoI is deregulated, respective Banks are offering rate of interest as
per
their
Board approved policy.
As intimated by banks, Rate of Interest in case of CBG Projects is linked with
Marginal Cost of Funds Based Lending Rate (MCLR)/Repo linked lending rate
(RLLR) and it depends on borrower rating and security coverage”.
1.33 Elaborating about the problems being faced by CBG plants in taking loans frombanks, the representative from M/s Phoenix India during the oral evidence submitted:“सर, मेन पॉइं ट बिकंग से र से आता है। बिकंग से र के बारे म हम दो-तीन चीजों का िजकरना चाहगे। सीिनयस ीफ कर दगे । सर, सबसे पहले, िजसके पास एक से ादा एलओआई
ह, जै से मेरे पास एचपीसीएल के ब त सारे एलओआई ह। िजसके पास एक से ादा एलओआई
ह, उनको बक से कहा जा रहा है िक आप एक-एक करके लोन ए ाई क रए, उसको चुकताक रए, िफर दू सरा लोन पास होगा। अगर ऐसा है तो िजसके पास बीस एलओआई ह और जैसे मेरेपास िफलहाल 54 एलओआई ह। अगर हम इस तरह से लोन लगे तो हम मर जाएं गे, उसके बादोजे बने गा। यह कैसे हो पाएगा? यह पहला पॉइं ट है । म तीन-चार पॉइं ट ही बोलूंगा, ादा नही ंबोलूंगा। दू सरा पॉइं ट कोलै टरल िस ो रटी का है। एक मािजन के बाद कोलैटरल िस ो रटीमां गी जा रही है िक कोलैटरल िस ो रटी के िबना बक लोन दे ना नही ं चाहती है । हालां िक, हमलोग जानते थे िक जब रज़व बक ऑफ इं िडया काॉज आया था, जो हम लोगों को पेपर भे जागया था, उसम यहयर था िक कोलैटरल िस ो रटी नही ं लगेगी। यह दू सरा पॉइं ट है । तीसरा
पॉइं ट यह है िक हर जगह पर हर िकसी को बक एं टरटे न नही ं कर रहा है । िजन-िजन बकों कािज िकया गया है , वहां बोला जा रहा है िक जहां पर ान बने गा, उसके बगल वाली जो ां च है,वही ं पर अ ाई करने के िलए बोला जा रहा है। ऐसी ब त सारी ां चेज़ ह। म खु द ऐसी 50 ां चेज़को जानता ं । म खासकर िबहार और झारखे ट की बात कर रहा ं । इसम बक एं टरटे ननही ं कर रहा है ”।
Collateral Security for CBG Plants
1.34 The Committee sought details of collateral security and for financing CBG projects,
the Ministry may also provide information on the and terms and conditions of the banks
for project financing and also whether there is purchase agreement between OMCs and
CBG plant for offtake of CBG gas taken at collateral by finance institutions to which DFS
in their written reply have submitted that:“Information on the terms and conditions of the banks for project financing in
general are as follows:
The requirement and aspects may differ from case-to-case basis depending on
the industry and project type.Banks undertake project finance proposals after
careful consideration of various aspects like:(i) Debt-Equity ratio(ii) Project Cost(iii) Source of Finance(iv) Infrastructural requirements (technological aspects, plant & machinery,raw material, power, water, manpower, statutory approvals, etc.)(v) Marketability(vi) Financial viability(vii) Arrangements for the Product Offtake(viii)Cash flows from the Project(ix) Repayment mechanism etc.
B. For financing CBG projects, the banks demand collateral security
There is no specific requirement forobtaining Collateral Security for
financing CBG projects, subject to mortgageability of the Project land. In thecases, where Primary Security of Project land is not mortgageable, an equivalentamount of collateral has been stipulated, as a risk mitigant measure”.
C. Consideration of the purchase agreement between OMCs and CBG plant for
offtake of CBG gas as a collateral.
“The Purchase agreement between OMCs and CBG plant for offtake of CBG gas
cannot be considered as a collateral by financial institutions. However, a firm
commitment / agreement for offtake of CBG will definitely provide adequate
comfort by the OMCs, for sanctioning of the loans by the Banks for CBG
projects”.
1.35 The Committee wanted to know whether Ministry is planning to access cheap
credit for SATAT from international financing agencies to which DFS in their written
reply have submitted that:“All matters related to lending from international agencies are being handled by
the Department of Economic affairs, Ministry of Finance. Ministry of Petroleum
may take up the matter regardinglending from agencies like World Bank, AsianDevelopment Bank with Department of Economic Affairs”.
1.36 The Committee desired to know whether NABARD is refinancing loans extended
by banks to CBG projects to which DFS in their written reply have submitted that:“All activities made eligible under priority sector lending definition of RBI can be
refinanced by NABARD to the eligible lending institutions. Construction of oil
extraction /processing units for production of bio fuels, their storage / distributionof infrastructure and setting up of compressed bio gas plant are also eligible for
NABARD’s refinance”.
1.37 The Committee desired to know the viability of Insertion of 'Escrow Clause' in theagreement between LOl holder and OMC/CGD to which MoPNG in their written reply havesubmitted that:“The escrow clause in the commercial agreement between LOI holder and OMCs
has been included on request from State Bank of India to make the CBG
agreements bankable. The escrow clause provides provision of an escrowaccount where the proceeds from the sale of CBG shall be deposited by OMCs.
The escrow account shall be used first for repayment of loan amount to banks
and subsequent payment shall be made to CBG Plant owner. This shall ensureloan repayment and bankability of the CBG Plants”.
1.38 The Committee pointed out that the CBG entrepreneurs are facing difficulties in
obtaining loans as banks are imposing severe conditions of collateral security, therepresentative of DFS during the oral evidence submitted that:-

“…..हर लोन बक उस ोजे की कॉमिशयल वायिब ी की बेिसस पर दे ता है। चाहे वे 40 हों,एक हो या पां च हों, हर ोजे को नॉमली इवै ूएट िकया जाता है िक वह ोजे वायबल है िकनही।ं हो सकता है िक िकसी एक आं े िोर ने अगर इक े 40 एलओआई िलए हों तो बक कोऐसा लगता हो िक इनम से सारे 40 ोजे ् स अभी वायबल नही ं ह और उ ोंने सोचा हो िक आपएक ोजे का चला लीिजए, उसकी वायिब ी िदखा दीिजए।उस एक ोजे के बाद बक म भी कांिफडस बनता है िक हाँ , यहइस तरह के िबजने सको चला सकता है, तो हम अगले लोन के िलए सोच। ….सर, आपने जो दू सरी बात लैकोकोलैटल रखने के बारे म कही है, हमारे पास बकों से जो फीडबैक है , वह यह है िक इस तरह केजो ादातर एलओआई हो स ह, उनके पास लीज़हो लै है। अगर आपके पास लीज़हो
लैहै तो उसे कोलैटल परपज के िलए मॉगज नही ं िकया जा सकता है। बक के िलए दो चीजआती ह, यह लोन की वै ू के ऊपर होता है िक िकतना लोन िदया जा रहा है तो उसके अनु सारबक चाहे गा िक जो ाइमरी िस ो रटी केप म आपकीां ट एं ड मशीनरी उनके पासहाइपोिथकेट हो। उसके अलावा अगर कोई गैप रह जाता है तो उसके िलए कोई कोलैटल ॉपटमां गते ह। यह बिकंग का अपना तरीका है , उसम उ एक िस ो रटी चािहए होती है । उसकेिलए अ र लैकी बात की जाती है । अगर लैलीज़हो है, िजसके ऊपर वह अपना ां टलगा रहा है तो लीज़हो लैको बक िस ो रटी के तौर पर नही ं रख सकता है । उसके िलएीहोलैचािहए। इसिलए अ र ां ट ॉपट के अित रलैकीज रत उनको पड़जाती है । सर, आपने इसम एक अ मु ा बताया था, जो डायरे ली हमसेसं बंिधत नही ं है, आपने े िडट गार ी फकी बात कही थी। यिद े िडट गार ी फजै सीकोई चीज बनती है तो उससे भी बकों म थोड़ा कांिफडस आएगा िक अगर लोन म िडफा होताहै तो शायद उनको उतना कोलैटल न लेना पड़ा और उसम उनके पैसे की भरपाई होने की कोईउ ीद बनती है । यही मेरी िट णी है ”।
Financing for CBG Projects:1.39 When the Committee wanted to know about the standardization and quality controlof the plant and machinery and finance schemes made available by IREDA, therepresentative of the MNRE during the oral evidence stated that:“Sir, from MNRE perspective, the earlier scheme ‘Waste-to-Energy’, in which
CBG was one of the components, had the validity up to 31st March, 2021. After
that, we went with the National Bio Energy Programme to the Ministry of Finance.
We got the decision in September 2022 that we could continue the programme tomeet only the earlier liabilities.जो लाइिबिलटीज ि एट की गई थीं, उसके िलए हम पां च सौकरोड़ पये दे रहे ह। But, Sir, we continued our follow up. जू न महीने म िमिन ी ऑफफाइनस ने एक ईएफसी वापस बुलाई थी। उसम वहीम अ ूव हो चु की है। Now, we willcontinue the programme with additional outlay which will have CBG as thecomponent also. उसकी जो गाइडलाइ ह, वे अभी अ ूवल े ज म ह। वह भी ज ी रलीजहो जाएगी।
Secondly, Sir, you mentioned about IREDA. IREDA is giving loan for CBG
projects also.अभी रसटली उ ोंने ब त सारे ोजे ् स िलए ह, including PFC, REC. For
this also, we will recommend them. But IREDA, which is under MNRE, isdefinitely giving loans for CBG projects.
सर, हमने ने शनल इंू ट ऑफ बॉयोएनज म डड् स बनाने के िलए एक कमेटी बनाई थी।उ ोंने अभी उस डड् स का फ डािदया है। We have submitted it to BIS.वह बीआईएस के र ू म है । उसके बाद, एक ोसेस से, we will come into the making ofstandards for CBG as well”.

1.40 When the Committee wanted o know Whether IREDA is refinancing loans
extended to CBG projects, the Ministry have submitted that:“IREDA has financed greenfield CBG projects after due diligence. Moreover, it
may be noted that IREDA Policy for financing CBG projects include bothGreenfield and commissioned projects. However, no Company has approached
IREDA for refinancing of commissioned projects till date”.
Cost of CBG Plants
1.41 The Committee wanted to know the cost of a CBG plant as worked out by the
Ministry and gestation period for CBG plants to which the MoPNG in their written reply
have furnished that:“The capital cost for setting up a CBG Plant varies largely as per capacity,
feedstock, technology, location and other factors. Tentative project costs basedon various feedstocks are provided below:

S.

Feedstock

No.

Plant

CBG

Project

Capacity

Output

cost

Paddy
1

12
100 TPD

Straw
2

Press Mud70-80 Cr
TPD

100 TPD

5 TPD

25-30 Cr

100 TPD

5 TPD~31 CrCow Dung
3/ Chicken
LitterThe construction period for a CBG Plant is about 12-18 months”.
1.42 The Committee sought to know information/details have been brought out by the
Ministry/PSUs about the CBG plants under SATAT giving details regarding theavailability of technology, equipments, skilled manpower, raw material etc. in the
country to which the MoPNG in their written reply have furnished that:“Oil PSUs have brought out information/details about the CBG plants under
SATAT giving details regarding the availability of technology, equipments, rawmaterial etc. The same are detailed below: 1. IndianOil has created a dedicated portal on SATAT initiative (https://satat.co.in).
The portal has details on SATAT initiative documents, financing of CBG Plants,
technology providers, enablers on CBG, Government Policies, Frequently Asked
Questions, details on manure marketing. The portal has detailed learningmodules on CBG technology and financing. The portal also offers learning
opportunities in plant operation & maintenance, equipment suppliers, technology,
manure, etc. and is regularly updated with latest details.
2. A detailed white paper on CBG detailing CBG production process, technologies,
enablers, etc. has been prepared. The same has been provided as part of
Expression of Interest on SATAT initiative”.
PRICING OF CBG
1.43 The Committee sought a comparative statement for pricing of natural gas fromdifferent sources as targeted by OMCs for marketing/sale of CBG to which the MoPNG
in their written reply have stated that:“Oil & Gas Companies have offered a procurement price of CBG of Rs. 46/kg +applicable taxes purified as per IS 16087: 2016 standards, compressed to 250
bar pressure and delivered to Retail Outlets in cascades. The procurement priceof CBG shall remain valid from 1.10.2018 to 31.3.2024. There will be periodic
revision in procurement price with effect from 1.4.2024, however minimum
procurement price will not be lower than Rs. 46/kg + applicable taxes for theperiod from 1.4.2024 to 31.3.2029.
The price of CBG including compression charges, at Rs. 46/Kg + GST translates
to approximately USD 12.4/MMBTU.
The price of Domestic Natural Gas (01.10.2021 to 31.03.2022) declared by
PPAC is USD 2.90/MMBTU.
The cumulative monthly average price of DES West India Marker, as per Platts
LNG daily dated 24.01.2022, is USD 20.538 / MMBTU”.
1.44 The Committee wanted to know and breakup of price payable by OGMCs to CBG
plants to which the MoPNG in their written reply have stated that:“As per the SATAT initiative, procurement price of CBG purified as per IS 16087: 2016
standards, compressed at 250 bar pressure and delivered to OMC Retail Outlets incascades was revised from 1.6.2022 and is detailed as under: 

The minimum procurement price of CBG will not be lower than Rs. 46/kg +applicable taxes for the period up to 31.3.2029.

The Retail Selling Price of CBG in a market shall be at par with RSP of CNG (asprovided by the authorized CGD entity).

The following slabs for CBG procurement price have been decided, which will be
the procurement price of CBG delivered at Retail Outlet of OGMCs situated atany distance (up to 75 km one way) as per IS 16087 2016 specification (or its
latest version) and compressed at 250 bar pressure: -S No Lower Retail Selling Higher Retail Selling Procurement Procurement

Price of CBG in Slab Price of CBG in Slab price of CBG price of CBG
including tax

including tax

Without GST With GST

Rs./kgRs./kgRs./kgRs./kg1

Retail Selling Price of CBG up to 70

54.00

56.70

2

70.01

75.00

55.25

58.01

3

75.01

80.00

59.06

62.01

4

80.01

85.00

62.86

66.01

5

85.01

90.00

66.67

70.01

6

90.01

95.00

70.48

74.01

7

95.01

100.00

74.29

78.01



Note: For further increase in slabs beyond Rs. 100/kg, procurement price will be
extrapolated as per the above. If the RSP of CBG falls below Rs. 70/kg, there will
be immediate revision in the procurement pricing.
Additional transportation cost for transportation of CBG beyond 75 km (one-way
distance) from CBG Plant shall be paid separately as per agreed slabs, based on
mutual discussion: One way Distance of CBG Plant

Additional cost

to Retail Outlet / Selling Pointof transportation of CBG
Rs./kg (without GST)

Above 75 km – upto 100 km

5.0

Above 100 km – upto 125 km

6.4

Above 125 km – upto 150 km

7.8

CBG-CGD Synchronization – The procurement price of Biogas offered to CBG
Producers under CBG–CGD Synchronisation Scheme is Rs 1082/MMBTU +taxes. In addition, the Producers would receive compressions charges/pipeline
compression charges/transportation charges as applicable for the Biogas/CBG
supplied”.
1.45 The Committee wanted to know the mechanism for fixing the CBG price based on
feedstock basis or calorific value of the gas to which the MoPNG in their written reply
have stated that:“Under CBG-CGD Synchronization scheme, the procurement price of CBG paid
to CBG producers has been revised to Rs.1082/MMBTU w.e.f 01.06.2022. This
price is equivalent to ~Rs 46/Kg excluding compression charges (i.e. 54 Rs/Kg– 8 Rs /Kg), with methane content of ~90% in Biogas]. In addition, CBG
producers would receive Biogas compression charge of Rs.8/Kg (at 200-250
bar pressure) for delivery at Retail Outlet OR Compression charge of Rs.2/Kg
for injecting in the MDPE/Steel pipeline of CGD entity.
The procurement price of Bio-CNG/biomethane to the CBG producers will be
increased on a pro rata basis depending on the purity (higher percentage of
methane content) of Bio-CNG/biomethane received”.
1.46 The Committee wanted to vis-a-vis has been price of CNG and whether the
Ministry has plans to review pricing at periodic intervals given the high volatility ininternational prices for natural gas to which the MoPNG in their written reply havesubmitted the following:“CBG price are decided by OGMCs participating in SATAT. As per the present
CBG pricing mechanism, CBG pricing is indexed to the Retail Selling Price (RSP)of CNG in the market. With an increase in the Natural Gas price, there shall be
an increase in RSP of CNG and an automatic increase in CBG procurement priceas per the slabs mentioned above. Accordingly, there shall be an automatic
review and increase of CBG procurement price once there is increase in CNG
price.
The procurement price of CBG shall be valid for one year or till next revision(which may arise out of dip in CNG price, etc.) whichever is earlier. If the RSP of
CNG falls below Rs 70/Kg, CBG procurement price will be reviewed on industry
basis”.
Gas Synchronisation Scheme
Bio-methane Injection to Gas-Pipelines
1.47 The Committee desired to know the difference in price of CBG under SATAT
Scheme and gas synchronisation scheme by OMCs and GAIL respectively, to which the
MoPNG in their written reply have submitted that:-

“The procurement price of CBG by GAIL under CBG CGD Synchronisation
Scheme is a single price across India which discounts the compression charge
component. The same is included in case of sale of CBG through cascades (at200-250 bar) under SATAT initiative”.
1.47A The Committee asked whether there is any phase-wise (short term and longterm) plans for blending quota/mix of co-mingled CBG in the total domestic gas supply
to the CGD sector to which MoPNG in their written reply submitted that:(i) “Domestic natural gas is supplied to CGD entities at a Uniform Base Price (UBP)
on a pan India basis. However, the Retail Selling Price of PNG/CNG is fixed by
the CGD entities based on their respective cost structure and margins, CAPEX,
OPEX, demand, etc. in a particular GA.
(ii) The CBG-CGD synchronization scheme envisages the share of co-mingled CBGin the total domestic gas supplied to CNG (T) and PNG (D) segment of CGD
sector reach up to 10%. The scheme will be reviewed after a period of three
years or as and when the percentage of CBG in the overall mix of
CNG(T)/PNG(D) in the CGD sector reaches 10% whichever is earlier”.
1.48 The Committee sought to know the infrastructure transportation of CBG from plant
to the injection points and whether the plans of integrating pipeline infrastructure with
CBG plants to which MoPNG in their written reply submitted that:“As regards the connectivity for injection of CBG in CGD network under the CBGCGD Synchronization Scheme, the responsibility of connecting the CBG plantwith the CGD network and ancillary activities up to a distance of 10 KMs from theplant to the injection point would lie with the Biogas/CBG producers. In thisregard, it is also envisaged that with the progressive development of CGD
network in the GAs the issue of connectivity, especially for distance of 10 km andabove shall be taken care of. Further, CGD entities are being sensitized aboutplanning their pipeline and other infrastructure in synergy with the upcoming CBG
plants so as to promote the injection of CBG in their network”.
1.49 The Committee wanted to know the initiatives undertaken for biomethane injection
quota in Natural gas grid, and CNG to which MoPNG in their written reply submitted
that:“For injection of CBG, GAIL has come up with the CBG CGD Synchronization
Scheme for blending CBG into local CGD network for sale in CNG(T) andPNG(D) sectors. Currently, CBG blending is <1% of CNG consumed which
progressively expected to go up to 10% as more and more CBG plants arecommissioned. This Ministry is working for further streamlining of CBG-CGD
synchronization scheme”.
1.50 The Committee wanted to know OMCs by CBG about differential price mechanism
for delivery of gas at different locations to which the MoPNG in their written reply havestated that:-

“Oil& Gas Companies have offered a procurement price of CBG of Rs. 46/kg +applicable taxes purified as per IS 16087: 2016 standards, compressed to 250
bar pressure and delivered to Retail Outlets in cascades (within 25 Km). The
procurement price of CBG shall remain valid from 1.10.2018 to 31.3.2024. There
will be periodic revision in procurement price with effect from 1.4.2024, howeverminimum procurement price will not be lower than Rs. 46/kg + applicable taxes
for the period from 1.4.2024 to 31.3.2029.
The above-mentioned pricing under SATAT initiative is uniform across India”.
1.51 The Committed sought to know the price offered to buy CBG is attractive enoughfor the investors to which the MoPNG in their written reply have stated that:“The pricing offered under SATAT initiative has resulted in 16 commissioned
CBG Plants and 37 more Plants are in various stages of construction. However,at various forums entrepreneurs have requested for increasing CBG procurement
price under SATAT”.
Elaborating about the CBG pricing during oral evidence the representative of
Phoenix India submitted that:“.............the gas pricing is good and we have no problem with that. The problem
is that right now there is no value for the bio-manure. That is why, I wassuggesting that if we are getting a price of anything between Rs. 4 to 6 per
kilogram of bio-manure which is getting produced, that will make the businesscase extremely viable. If there is a carbon value on top of it, that definitely makes
it very attractive. But let us go step by step. I think the first thing to be done is thebio-manure inclusion and acknowledgement”.
1.52 The Committee pointed out that the GAIL India Ltd. is finalising theoperational modalities for the supply of CBG blended with domestic gas and whether it
includes setting a uniform price of City gas / PNG across all CGD entities(private/PSUs) to which the MoPNG in their written reply have stated that:“Domestic natural gas is supplied to CGD entities at a Uniform Base Price (UBP)
on a pan India basis. However, the Retail Selling Price of PNG/CNG is fixed by
the CGD entities based on their respective cost structure and margins, CAPEX,
OPEX, demand, etc. in a particular GA”.
1.53 The Committee desired to know the quality specifications fixed for CBG by OMCs
and how is the quality checked, to which the MoPNG in their written reply have stated
that:“The quality of CBG supplied by the CBG Plant is of automotive grade and in
conformity to IS 16087:2016 standards or its latest version. Additionally following
shall also be met
i. CBG shall be free from liquids over the entire range of temperature andpressure encountered in storage and dispensing system.
ii. The CBG shall be free from particulate matter such as dirt, dust, etc.

iii. CBG delivered shall be odorized similar to a level found in local
distribution (ref. IS 15319)
CBG Plants have online Gas Chromatograph/ Gas Analyzer and all relevant
testing equipment to ensure that the quality of each cascade of CBG delivered to
OGMCs meets all parameters of the above said BIS Standards. Test reports/
quality certificates duly certified by the CBG Plant owner accompanies with every
Cascade of CBG supply”.
1.54 The Committee wanted to know the difference in the pricing of CBG depending on
the various feedstocks, the representative of Ever Enviro submitted that:“यह फीड ॉक टू फीड ॉक िडपड करता है। पराली म आउटपुट ादा है, लेिकन कॉ है ।जै से ु िनिसपल सॉिलड वे म है, अगर मेरे पास 100 टन ु िनिसपल सॉिलड वे है, तो उससे3.2टन गैस िनकले गी और अगर मे रे पास 100 टन पराली है तो उससे 14 टन गैस िनकलेगी।ु िनिसपल सॉिलड वे म, जै से म तो रॉय ी दे रहा ँ ,ोंिक मेरा ां ट इतना बड़ा है । जोोड न की कॉ आती है, नं बर वन, वह ां ट साइज पर िडपड करती है, छोटा ां ट वायबलनही ं है। नं बर टू , आपका ऑ े क िकतनी दू री पर है । आज जो हमारीीम आयी है, वह 75िकलोमीटर तक का एक रे ट एक समान है। िकसी का अगर 10 िकलोमीटर है तो उसके िलएवायबल हो जाएगा, लेिकन अगर उसे 75 िकलोमीटर जाना है तो रे ट वायबल नही ं होगा। यहटे ोलॉजी के ऊपर, आपकेां ट की कैपेिसटी के ऊपर िडपे ट है , 2.5 पये का कोई मतलबही नही ं है । अगर 2.5 पये होता तो आज 5 लाख ां ट लग जाते ”।
1.55 The Committee asked about the potential end consumers and calorific value of
CBG to which the MoPNG in their written reply have stated that:“The potential customers of CBG are vehicles and industries towards
replacement of petrol, diesel and CNG. CBG is also sold to commercial
customers as replacement of LPG”.
“The calorific values of CBG and Natural Gas are as under:
The typical calorific value range for CBG is 8100-8800 Kcal/SM3 (GCV).
The typical calorific value range for Natural Gas (Domestic & Imported) is 91509800 Kcal/SM3”
Taxation structure on CBG Industry
1.56 The Committee wanted to know various types of taxes imposed on CBG and its byproducts like Liquid fermented organic manure and what steps are being taken forrationalization of the same.
“Presently, CBG/biogas is covered under GST @ 5%. Branded and packed
Fermented Organic Manure is covered under GST @5%. However, Natural gas
is outside GST and is liable to State VAT / Central Sales Tax. Further,conversion of natural gas to CNG is liable to Central Excise Duty. Accordingly,
when Biogas is mixed with natural gas for compression to CNG, the same may
be taxed for Excise Duty and VAT, apart from GST on Biogas. This Ministry hasrequested Department of Revenue to exempt the excise duty on the quantity of
CBG blended with CNG until Natural Gas is bring under the ambit of GST”.

A.

Income Tax Issues:-

1.57 The Committee sought to know the impact of recent amendments in the Income
Tax Act, 1961, leading to an ambiguity on the continuance of exemption available to
CBG plants in respect of corporate tax under Section 80 JJA and whether exemption
from payment of corporate tax is still available toCBG plants under section 80 JJA of
Income Tax Act to which Department of Revenue (DoR) have in the written reply havesubmitted that:“With regard to the above it may be noted that section 80JJA of the Income-tax
Act, 1961 (the Act) provides for deduction of 100% from the profits and gains
derived from the business of collecting and processing or treating of
biodegradablewaste for generating power or producing bio-fertilizers, biopesticides orother biological agents or for producing bio-gas or making pellets or
briquettes forfuel or organic manure for a period of five consecutive assessment
years beginningwith the assessment year in which such business commences.
Accordingly, all the assessees, including corporates engaged in production ofbio
gas may avail of the deduction under section 80JJA of the Act for a period of
fiveconsecutive assessment years beginning with the assessment year in whichsuchbusiness commences. It may be pertinent to note that at present there is nosunsetclause applicable to the profit linked deduction under section 80JJA of theAct.
It may be pertinent to mention that if the domestic companies engaged inthebusiness of producing bio-gas have opted for the concessional taxation
regime of 22% (plus applicable surcharge and cess) under section 115BAA of
the Act or theconcessional taxation regime, applicable to new domestic
manufacturing companies,of 15 % ( plus applicable surcharge and cess) under
section 115BAB of the Act, theyshall not be eligible to claim the deduction under
section 80JJA of the Act as theoption under the concessional taxation regimes isavailable to domestic companiessubject to the condition that they, inter-alia, do
not avail any specified exemptionsand deductions under the Act”.
1.58 Elaborating further on the issue whether the exemption is available to all plants or
the same is subject to some eligibility conditions and whether the Ministry proposes toextend the duration of exemption in view of poor performance of SATAT scheme anddevelopment of domestic courses of energy to which DoR have in the written reply havesubmitted that:“Under section 80JJA ofthe Act 100% profit linked deduction is applicable to allassessees on their incomederived from the business of collecting and processing
or treating of bio-degradablewaste for generating power or producing biofertilizers, bio-pesticides or otherbiological agents or for producing bio-gas or
making pellets or briquettes for fuel ororganic manure for a period of fiveconsecutive assessment years beginning with theassessment year in which suchbusiness commences. The other condition for availingthis deduction is that thereturn for the assessment year is required to be filed beforethe due date for suchassessment year.
The deduction under section 80JJA of the Act can be availed by theassessee fora period of five consecutive assessment years beginning with theassessment
year in which the business of collecting and processing or treating of
biodegradablewaste for generating power or producing bio-fertilizers, biopesticides orother biological agents or for producing bio-gas or making pellets or
briquettes for fuel or organic manure commences.
An assessee is eligible to claim deduction under section 80JJA of the Actif hehas profits or gains derived from the business of collecting and processing
ortreating of bio-degradable waste for generating power or producing biofertilizers,bio-pesticides or other biological agents or for producing bio-gas or
making pellets orbriquettes for fuel or organic manure. As mentioned above thereturn is also required to be filed before the due date.
There is no proposal to extend the period of exemption regime as the deduction
is available from the year of commencement of production of bio-gas.”
B.
GST issues in CBG Plants:1.59 When the Committee wanted to know as to what steps are being taken by the
Department of Revenue to address the concerns of the CBG entrepreneurs, regarding
harmonization of tax structure related to CBG the representative of the DoR during theoral evidence submitted that:“कुछजीएसटी, ए ाइज, वाए टी ऑफ ां ट्स इ ािद पर ए। म माननीय सिमित काान इस ओर आकृ करना चा ं गा िक जो बायोगैस ां ट्स थे और र ुएबल के और ां ट्स ह,जै से सोलर पावर और सोलर पावर जे नरे टर, इन सबको एक साथब करके उन पर जीएसटी
लगता था। पहली बार जीएसटी की दर 5 ितशत थी। पर, सम ा यह थी िक यह 5 ितशत कीदर दे खने म अ ी लगे िक शायद वह इनकी हे कर सके, पर त यह है िक अगर आप इनां ट्स पर या मशीनरी पर या मै ु फैरं ग आइट पर 5 ितशत की दर लगाएं गे तो वा व मयह नु कसानदे ह है। इससे होता यह है िक जैसे बायोगै स ां ट्स या सोलर सेया और जोर ुएबल ह, इनके सारे इनपुट्स और इनपुट सिवस और कैिपटल गुड्स, सभी पर 18 ितशतका जीएसटी लगता है । अब अगर इस पर भी 5 ितशत लगे तो जो ए ु मुलेटेड आईटीसी केइ ू ज आते ह, उसकी वजह से डोमे क मै ू फैरं ग वाएबल नही ं रहता है और इसकामतलब यह है िक अगर डोमे क मै ूफैरं ग वाएबल न रहे और उनके ए ु मुलेटेड आईटीसीरह तो 5 ितशत करने का मतलब है िक िफर ये आइट दे श म नही ं बनगे। िफर आपको उसेइ ोट ही करना पड़े गाोंिक domestic manufacturing cannot survive the unlevelplaying field which is created vis-à-vis imports. इसके प रणामप, इ टडू टीर म जीएसटी म आने के बाद ब त काम ए ह। आपने दे खा होगा िक दो-तीन सालों महमने जीएसटी म काफी सारे आइट की रे ट् स को कैिल ेट िकया है । इसका मतलब िक इनपुट
साइड पर जो जीएसटी रे ट् स ह, वे आउटपुट साइड के रे ट् स से कम न हों। आउटपुट साइड केरे ट् स हमे शा ादा होना चािहए तािक पीछे से जो े िडट आ रहा है, वे यूज हो सक। हम लोगों नेकेवल बायोगै स ां ट्स के िलए कोई ेशल िड े नसे शन नही ं िकया है ।

...सर, आपने दू सरा इ ू यह भी उठाया था िक बायोगै स पलां ट्स के जो इट् स ह, उनम ाआता है, इसम कुछ स े ह है और जब असेसमट की बारी आती है, जैसे अगर क ेसर आया याइस तरह के आइट आए तो असे िसंग ऑिफसर ारा स े हहोता है औरउसम िववाद
पैदा होता है । पर, हमारी जो नोिटिफकेशन है, उसे हम दोबाराै रफाई भी कर सकते ह। जै सािक कमेटी कह रही है , हम इस िवषय कोै रफाई करने की कोिशश करगे । बेिसकली, इसमहमने तीन चै स के नाम िदए ह – 84, 85 और 94। उस पर आने वाले जो भी आइट ह, िजसममेजॉ रटी ऑफ आइट आते ह,उन सब पर अगर बायो गैस ां ट के िलए इनपुट है और अगर वे एन ूस के िलए िदए जा रहे हतो उस पर ितशत का ही रे ट है। हम लोग इसे उिचत तरीके से ै रफाई करने की कोिशश
करगे ।
सर, तीसरा इ ू यह था िक बायोगैस जीएसटी के दायरे म है , सीएनजी ए ाइज के दायरे म हैऔर एक आइटम बायोगै स जीएसटी के दायरे म और दू सरा सीएनजी ए ाइज के दायरे म होनेसे शायद इस पर डबल टै ेशन होता हैोंिक इसम होता यह है िक मान लीिजए िक बायोगैस
पर 5 ितशत जीएसटी लगा। उसके बाद बायोगै स को क े स करके सीएनजी के साथ िमिकया गया और फाइनली सीएनजी िबकी तो सीएनजी पर 14 ितशत की ए ाइजूटी लगतीहै और वै ट भी लगता है । इसिलए मं ालय कााव है या उ ोगों का जो सु झाव है, उनका यहकहना है िक चूं िक बायोगै स िम होकर अ ीमेटली सीएनजी बनता है और बायोगै स म जीएसटीअगर लग गया है तो उतना वे वर बाद म िमलना चािहए। आप यह कह सकते ह िक दोनों चीजअगरू टी पेड ह और िमहो रही ह तो शायद दोबारा से ए ाइजूटी न लगे। पेटोल औरडीजल म एथे नॉल िडं ग और जो बायो-डीजल िडं ग होती है , उसम इस तरह के कंसे शन हकि अगर दोनों िमहोकर आएं तो उसम दोबारा ए ाइजू टी नही ं लगाते ह। इस िवषय महम एमओपीएनजी से बात कर रहे ह। इस िवषय म कुछ त ह, जो आपके िलए जानना ज रीहै । जब अगर कोईू टी रड न होता है या कंसैशन हम दे ते ह, तो उसकी सं भावना यह होतीहै कि वह पास ऑन होगा, तब तो उस कंसैशन को दे ने का फायदा है । अगर ऐसी संभावना बनतीहै िक वह पास ऑन नही ं होगा, वह ए ा ड हो जाएगा, तब िव मं ालय को िवचार करना पड़े गािक इसम िकसका फायदा हो रहा है । …… एमओपीएनजी को हमने रसटली िलखा भी है । इसपर िवचार करके हम लोग आपके पास आएंगे िक हमनेा िवषय िलया और ज ी कोिशश
करगे िक इस काम को कर। मूलभू त मु ा यह है किा ने चुरल गैस को जीएसटी म लाया जाएऔर ा उससे समाधान होगा? यह सच है कि जब तक जीएसटी म नही ं आएगा, यह कैसकेिडं गइ ू ज़ कुछ-कुछ रहगे। मान लीिजए आपने सीबीजी कर भी िदया, तो ां ट म जो टैलगा रहा
है, जो 12 पसट जीएसटी लग रहा है , वह तो िफर भी इम् बेड होगी और सिवसे ज़ म जो जीएसटीलग रही है , वह भी इ े ड होगी। इसिलए वह कैसकेिडं ग तो होगी, जब तक यह एक चीज न बने ।इ ू यह है कि े ट्स को ने चुरल गैस से काफी रे वे ू िमलता है, सटर को कोई खास रे वे ू नही ंिमलता है । हमारे िलए रे वे ू का मु ा नही ं है। 1500 से 2000 करोड़ पये का ही रे वे ू ही िसफहम िमलता है । े ट्स को अगर आप दे ख तो करीब दस हजार करोड़ पये का रे वे ू इसमआएगा। उनके िलए जीएसटी काउं िसल म आकर यह मानना िक नेचुरल गैस को जीएसटी म लाएं,यह एक बड़ा मु ा है । इसम इनफॉमल चचा नही ं हो पाई। उनकी तरह से ब त ादा यह नही ं हैकि वे पेटोिलयम ोड ् स को लाना चाहगे। हम लोग यास करते ह, हमने िड स िकया है। होसकता है कि भिव म ऐसा हो पाए।”।
1.60 The Committee desired to know the GST slab for biogas plant-related equipment &parts to which the Ministry submitted the following:“GST rate on all renewable energy devices (including CBG plants) and the parts
for their manufacture has been increased from 5% to 12% as per therecommendations of the 45th GST Council. This was done in order to remove theinverted duty structure as most of the inputs for these renewable energy devices
and their parts attract a GST rate of 18%”.
1.61 The Committee further enquired whether the increase in GST slab has resulted inhigher GST mop up and the quantum in GST mop up to which the Ministry submitted
the following:“The increase in GST rate on all renewable energy devices (including CBG
plants) was done to address the inverted duty structure vis-à-vis the inputs forthese equipment which attract 18% rate of GST and not to increase in GST mopup”.
Continuing further, the Committee sough to know input credit scheme under GST for
CBG plant & machinery to which the Ministry submitted the following:“Under GST regime, Suppliers are entitled to take credit of input tax paid on
their inputs, input services or/ and capital goods which are used or intended to
be used in the course or furtherance of his business, subject to suchconditions and restrictions as are prescribed under the GST law and rules madethereunder. Such eligible input tax credit can be availed and utilized for
offsetting tax
liability on outward supply”.
1.62 The Committee pointed out that on CBG both VAT and GST are levied to which
the Ministry have submitted that:“There are no items on which both GST and VAT is levied. Only GST is leviedon biogas at a concessional rate of 5%”.
1.63 The Committee sought to know the structure of duty on ethanol which is also anenergy product and whether both VAT & GST are levied on ethanol and how duty
structure of CBG is different from that of ethanol, to which the Ministry have furnishedthe following in their written reply:“Ethanol attracts GST at the rate of 5% when supplied to Oil Marketing
Companies for blending with motor spirit. Otherwise, ethanol attracts 18% GST.
VAT is not levied on ethanol”.
1.64 The Committee sought clarity in the definition of biogas plant under GST Act. andat times falling under the scanner of Indirect Taxation Officials due to the certain items
such as compressor, up-gradation units, balloons (membranes), etc., when procured atconcessional GST rate, to which the Ministry have furnished the following in their written
reply:“GST rate on the parts for manufacture of renewable energy devices, including
CBG plants, covered under S. No. 201A of notification No. 01/2017-CT (Rate)(Annexure) attract GST rate of 12%. Therefore, if items like compressor,
upgradation units, and balloons (membranes) are procured for use inmanufacture of Bio-Gas plant or waste-to-energy device plant/ devices, they will
attract a GST rate of 12%”.
1.65 The Committee sought to know the steps taken to bringing a uniform tax regime for
CBG and its likely substitute petroleum products (NG, PNG, LPG) as this creates ananomaly (particularly for marketing companies) in the swift substitution/ switching/
blending of CBG with petroleum products, to which the Ministry have furnished thefollowing in their written reply:“Currently, while biogas and LPG attract GST levy, Natural gas attracts central
excise duty and VAT.
Article 279 A (5) of the Constitution prescribes that the Goods and Service Tax
Council shall recommend the date on which the goods and services tax shall belevied on petroleum crude, high speed diesel, motor spirit (commonly known as
petrol), natural gas and aviation turbine fuel (ATF). Further, as per section 9(2) of
the CGST Act, inclusion of these products in GST will require therecommendation of the GST Council.
So far, the GST Council, in which the States are also represented, has not madeany recommendation for inclusion of natural gas under GST”.
1.66 The Committee desired to know the different GST rate for Turnkey contract of thebiogas plant wherein the supply is charged at 12% GST and service at 18%. And thesteps taken to bring a uniform tax regime for procurements in CBG projects to which the
Ministry have furnished the following in their written reply:“If renewable energy devices are supplied, by a supplier, along with supplies ofservices related to construction or engineering or installation or other technicalservices for these renewable energy devices, then the value of supply of goods
shall be deemed as 70% and the value of supply of services shall be deemed as
30%. (S. No. 201A of notification No. 01/2017-CT (Rate) refers). Further, GST
rates are decided by the GST Council in its meetings and no recommendation
has been made by the Council regarding change in GST rates for procurements
made in CBG projects. No inputs have been received in this regard from the line
Ministry i.e. Ministry of Petroleum and Natural Gas, either”.
Central Financial Assistance to CBG Plants:1.67 When the committee have come to know the reasons for discontinuing Central
Financial Assistance which was earlier provided to CBG plants and Whether the
Ministry proposes to restart the Central Financial Assistance to CBG plants in view ofpathetic performance of SATAT scheme to which MNRE in writeen reply hav submitted
that:“The Ministry of New and Renewable had been implementing “Programme on
Energy from Urban, Industrial and Agricultural Wastes / Residues” till 31.03.2021.

Under the programme, Central Financial Assistance (CFA) was provided forsetting up of CBG plants.
Further, for continuation of scheme beyond 31.03.2021 till 2025-26, aconsolidated proposal named National Bio-Energy Programme was submitted to
EFC. Now, EFC has recommended Phase-1 of the Program with a budget outlayof Rs. 858 Crore, which also includes the committed liabilities. While, theNational Bioenergy Program will be implemented in two phases with a total
budget outlay of Rs. 1715 Crore from 2021-22 to 2025-26”.
1.68 Further, the Committee wanted to know Whether the Ministry proposes to enhance
the central financial assistance to offset the rising inflation and thereby cost of setting up
the plant, to which MNRE in their written reply stated that:“Further, it is to mention that performance evaluation of “Programme on Energy
from Urban, Industrial and Agricultural Wastes / Residues” implemented during
FY 2018-19 to FY2020-21, Third Party recommended to keep the rate of CFA for
CBG projects unchanged. Accordingly, CFA rates for CBG projects implemented
under National Bio-Energy Programme will remain unchanged as i.e. Rs. 4.00
crore for 4800 kg per day of CBG”.
1.69 The Committee further wanted to know the status of formulation of standards forterms and definitions, construction and design, operation, technical specs, emission
standards, safety etc. and by when the same is expected to be made enforceable thatby the Ministry. In this regard, the Ministry have submitted that:“The draft biogas plant standards and guidelines have already been submitted to
BIS by MNRE on 20th Apr 2022. Now, BIS has constituted three sub-committees
to finalize the draft for small-, medium- and large-scale biogas plants separately
and as informed by BIS, it is expected to finalize the draft and publish it by Dec
2022”.
1.70 The Committee wanted o know the steps being taken to provide carbon credits andits trading and offset mechanism in general and also in specific with respect to CBG
plants to which the Ministry have submitted that:“The Energy Conservation (Amendment) Bill, 2022, administered by Ministry ofPower and introduced in the Parliament, inter alia, seeks toto establish carbon
credit markets in India. The bill proposes to insert a new clause (w) in section 14
oftheprincipal
Act,afterclause(v)
asgiven
below:––(w) specify the carbon credit trading scheme”
1.71 When the Committee wanted to know whether the CBG plant owners are also
applying for carbon credits and what is the mechanism adopted for the same therepresentative of the Verbio industries during the oral evidence informed that:“The question is, what is the value we are getting for that claim? For example, we
did this exercise. There is a consulting firm based out of Indore. They did ourcomplete evaluation. They gave a value of $5 per tonne of carbon dioxide for one
carbon credit. To be honest, with the effort which will go into this and getting $5
for one tonne is not really worth the effort. That is why we did not proceed withthat topic. So, right now, there is no institutionalised mechanism wherein a fairvalue can be allocated for that carbon credit. Yes, we can get it but then there
has to be a fair value allocation”.
Role of KVK, FPOs and CHC in CBG plants:1.72 When the Committee discussed agricultural extension machinery including Krishi
Vikas Kendras (KVK), FPO, etc. to make special efforts to propagate utilization of‘Organic Ferment Manure’ the representative of the Ministry submitted that:“आपने जोिकया है, उसम तीन कंपोनट् स ह। आपने ए टशन के बारे म जानना चाहा है िकजो जै िवक अपिश है, उसके उपयोग को बढ़ावा दे ने के िलए कृिष मं ालय ा कदम उठारहा है । हमारा जो ए टशन िवं ग है, उसके दो कंपोनट् स ह। एक े ट का ए टशन िवं ग है औरदू सरा आईसीएआर का कृिष िव ान केके मा म से ए टशन िवं ग है । उनके जो सं थान ह,उनके मा म से िडमॉ े शंस िकए जाते ह। जै िवक खेती की बढ़ोतरी के िलए जोआईसीएआर के ने टवक ऑफ इं ी ू ट्स ह, िजनके मा म से जैिवक कृिष को बढ़ावा िदयाजाता है । उसके अं तगत िविभॉ ह, उनके पैकेज ऑफ ै सेज़ बनाए गए ह। इनके जोपैकेज ऑफ ै से ज़ ह, इसम कैसे -कैसे जैिवक इनपुट्स का उपयोग होगा, उसके बारे मकेवीकेएज़ के मा म से जानकारी दान की जाती है और फॉमर फीड िडमॉ े शंस िकए जातेह। दू सरा, आपने एफपीओज़ का िज िकया है । भारत सरकार जै िवक खे ती की दो प रयोजनाएंि या त करती है । एक पीकेवीवाई नाम से परं परागत कृिष िवकास योजना है । दू सरा िमशनऑगिनक वै ू चे नडे वलेपमट फॉर नॉथ-ईरीज़न है । उ र पूव े के िलए एक िवशेषप रयोजना है । इन दोनों प रयोजनाओं के अं दर िकसानों के समूह बनाए जाते ह। इन समूहों केअं तगत जै िवक खे ती को बढ़ावा दे ने के िलए इनपुट्स को सपोट िदया जाता है । उनको टे ोलॉजी,वै ू एिडशन और सारी चीज ोवाइड की जाती ह। इसी प रयोजना के अं दर क म हाय रं गसटस का भी ावधान है , जो जै िवक इनपुट्स ह, उसके मा म से िकसानों औरस मोवाइड कराए जाते ह। महोदय, म यह भी िनवेदन करना चा ं गा िक जब कं े ड बॉयो गैस सं यं ोंकी बात आई थी, तो उससे दो तरह के आउटपुट्स आते ह। एक तो फम े ड ऑगिनक मै ोर हैऔर दू सरा िल ड फम े ड आगिनक मै ोर है। िकसी भी खाद इनपुट को बाजार म बेचने सेपहले आव क है िक एक फिटलाइजर कंटोल ऑडर है, जो िक एसिशयल कमोिडटीज़ ए केअं तगत चिलत आ है, उसम इन खादों को शािमल िकया जाता है । कृिष मं ालय ने वष 2020
म इनको फिटलाइजर कंटोल ऑडर के अं तगत शािमल िकया है । जो िल ड और सॉिलड जैिवक
इनपुट्स जे नरे ट हो रहे ह, इनको कोई भी इं टर े ोर अपने माकिटं ग चैनल के ज रए पूरे दे श केिकसानों को बेच सकता है । उसम िकसी तरह की पाबंदी नही ं है”।Elobarating further on the issue:“मने िनवे दन िकया है िक इसके अं दर इनपुट खरीदने का ावधान है, िजसके िलए िकसानों कोप रयोजना के मा म से सपोट िदया जाता है । िकसानों के िलए बाजार म िजतने तरह के जै िवकइनपुट्स उपल ह, उनको ीडम है िक वे उसम से ा चु न। जो आउटपुट आ रहा है , संयं ों सेजो खाद आ रही है , उनको उसका िडमां े शन केवीके और कृिष िव िव ालयों के मा म से हमकरा सकते ह, तािक उनकी मता के बारे म िकसानों को जानकारी हो सके और वे इनको भीचू ज कर सक। साथ ही, कंपनीज को भी इसम आगे आना पड़े गा, तािक इसकी माकिटं ग हो औरइसके बारे म िकसानों को बताया जा सके”।
1.73 When the Committee further wanted to know about the demonstration projects for
management of crop stubble and agriculture residue. The representatives of MoA
submitted that:-“मने टे ोलॉजी की बात की है िक मं ालय ारा जै िवक खेती म िकस तरह के टे ोलॉजी औरिकस तरह के पैकेज ऑफ ै स तैयार िकए गए ह, िजससे िकसान अलग-अलग तरह के ॉले सकते ह। वह डडाइजे शन कृिष मं ालय ारा िकया गया है । इनपुट का जो इं िडपडस है , वहिकसानों पर छोड़ा गया है औरीम के अं दर इनपुट के िलए पैसा िकसानों को ोवाइड िकया जारहा है । मने यह िनवे दन िकया है”।1.74 The Committee further wanted to know about the role of NABARD in providing
assistance to CBG plants, the representative of MoA submitted that:“गवनमट् स को लिडं ग करते ह या े ट गवनमट् स के कारपोरे शं स को लिडं ग करते ह। इसकेअलावा, नाबाड ादातर बको रीफाइनस करता है तािक वे बआगे ए ीक चर के े मलिडं ग कर सक, िजनम को-ऑपरे िटव ब , रीजनल रल ब ह”।
Bio-manure offtake issues:1.75 The Committee desired to know whether Agriculture and Fertilizer Ministries havebeen involved for off take of bio-manure so that the financial viability of CBG plants are
improved upon to which the MoPNG in the written reply have submitted that:“Ministry of Agriculture and Ministry of Chemical & Fertilizer are yet to create any
policy for off-take of bio-manure. Ministry of Fertilizer has been requested toprovide Market Development Assistance for FOM (@Rs. 1500/ton) and direct
Fertilizer Companies for mandatory off-take of Fermented Organic Manure(FOM) / bio-manure along with chemical fertilizer. Ministry of Agriculture has
been requested to create enabling ecosystem for promotion of bio-manure
through research and extension activities. Such measures will increase viabilityof CBG Plants under SATAT initiative”.
1.76 When the Committee wanted to know about the market for fermented organic
manure/digested bio-gas slurry and the price and if any subsidy is provided by thegovernment, the representative of Department of Fertilizers (DoF) during the oral
evidence submitted that:“फमटे ड बायो मै ोर को िपछले साल ही एफसीओ के अ र लाया गया था। अगर आप एफसीओम दे खगे, तो इसम 10 से ादा ऑगिनक फिटलाइजस ह, उनम फमटे ड ऑगिनक मै ोर भी ह।जहाँ तक इसम स डी या सपोट की बात है, हमारे यहाँ पहले एक माकट डे वलपमट अिस सहोता था, वह िसफ िसटी क ो के िलए था। िसटी क ो का ादा खच नही ं हो रहा था औरउसकी ािलटी म भी कुछ फॉ थी, इसिलए एमडीए चला नही ं, इसिलए हम डीओई ने बतायािक उसको ब कर िदया जाए। वह ब हो गया है। अब आगे के िलए हमने एक एमडीए
ीमबनाया है, िजसम सारे ऑगिनक और बायो फिटलाइजस इं ूिडं ग फमटे ड बायो मै ोर के िलएहमने एक ईएफसी नोट बनाकर डीओई को भेजा है। अभी यह िवचाराधीन है । दू सरी बात, इसमजहाँ तक ऑगिनक मै ोर की बात है, तो उसम 1500 पए ित मीिटक टन माकट डे वलपमटअिस स दे ने का ावधान है । यह तो चल ही रहा है । इसके अलावा, हमने सारे पीएसयू ज औरहमारी क नी को, जहाँ पर क े ड बायो गैस केां ट्स लगे ह, उनके िल दे ते ए, हमनेउनको कहा है िक जो वहाँ से मै ोर बनता है , आप इनको बा े ट ए ोच म सारे े ट्स याफामस को अपने आउटलेट्स म उपल कराएं गे ।यह दू सरी चीज है , जो हमने की है । इसकी मॉिनट रं ग अभी शु नही ं की है। हाल ही म िमिन ीऑफ पेटोिलयम एं ड ने चुरल गैस के साथ एक मीिटं ग ई थी। थड पॉइं ट है, जैसा िक ाइस केबारे म कहा जा रहा है, ाइस तो हम िकसी का भी िनधा रत नही ं करते , अनलेस यू रया एक ही है ,िडपाटमट ऑफ फिटलाइजस ाइस िफकरता है , अदरवाइज सारे माकट फोस के िहसाब सेही ह। इसके सं बंध म िमिन ी ऑफ पेटोिलयम एं ड नेचुरल गैस के साथ एक मीिटं ग करगे । इसेदे ख लगे िक इसे िकस तरह कर, िजससे जो भी इं टर े ोस उसम जो भी लगाएं , उनको फायदा
हो।इसम आगे कायवाही की जाएगी, लेिकन हमारेर से एमडीए के िलए और बा े टए ोच के िलए हमने सबको बता िदया है। जहां तक फामस का इ ू है , ए ीक चर के जॉइं टसे े टी यहां पर ह। इनसे पहले म वहां जॉइं ट से े टी थी। वहां ऑगिनक फािमग कीी ज ह,
िजनम फामस को एकीम के अं तगत एक परं परागत कृिष िवकास योजना है, िजसके तहतउ यह िमलता है , हम माकट डे वलपमट अिस स दे ते ह। अत: दोनों तरफ से हम इसकोबढ़ावा दे ने की कोिशश कर रहे ह”।
MARKET DEVELOPMENT ASSISTANCE FOR CBG
1.77 The Committee note that a market development assistance of at least rupees
1500/- per tone was earlier being given to the manufacturers of city compost under the
Swach Bharat Mission Scheme. The Committee desired to know whether the above
market development assistance is available for CBG plants based on municipal solid
waste to which MoPNG in their written reply submitted that:“The Government had approved the policy on promotion of city compost which
was notified by the Department of Fertilizers on 10.02.2016 wherein Market
Development Assistance of Rs. 1500/- was provided for scaling up production
and consumption of city compost.
The scheme of Market Development Assistance (MDA) for scaling up production
and consumption of city compost has been discontinued after 30th September,
2021 based on the review of the MDA Policy and recommendations of
Expenditure Finance Committee (EFC) in its meeting dated 2nd August, 2021”.
1.78 The Committee desired to know whether assistance from Fertilizers companies
towards co-marketing of digestate along with chemical fertilizers through their dealers
network and other related marketing entities to be extended to all the organic manure(including biogas plants) producing plants registered with Department of Fertilizers
sector to which MoPNG in their written reply submitted that:“Vide letters dated 7.1.2022, 11.5.2022, 27.5.2022 and 19.7.2022, all fertilizer
marketing companies have been requested to arrange for off-take of Fermented
Organic Manure (FOM) and other organic and bio-fertilizers with chemicalfertilizers as a “Basket Approach” to ensure balanced and integrated nutrient
management for the crops.
A concept note to promote organic and bio-fertilizers by extending Market
development Assistance (MDA) for organic fertilizers and bio-fertilizers has
been sent to Department of Expenditure for In-principle Approval. Response from
Department of Expenditure is awaited.

Training and Manpower
1.79 The Committee wanted to know whether Ministry has taken up with Ministry of Skill
Development or oil PSUs for training programme to address the issues of lack ofsufficient trained manpower to which the MoPNG in their written reply have stated that:“Oil PSUs have taken various steps to enhance skill development for CBG
sector:1. They are offering handholding in technology, financing and other aspects tofacilitate CBG Plants under SATAT initiative being set up by entrepreneurs.
Various technical sessions have been held for prospective entrepreneurs withinvolvement of eminent technology institutes like IITs, IISc, etc. and technology
providers to provide details on SATAT initiative to existing and new applicants.
2. A dedicated web portal on SATAT initiative (https://satat.co.in) has beendeveloped. The portal has details on SATAT initiative documents, financing of
CBG Plants, technology providers, enablers on CBG, Government Policies,
Frequently Asked Questions, details on manure marketing. The portal has
detailed learning modules on CBG technology and financing. The portal alsooffers learning opportunities in plant operation & maintenance, equipment
suppliers, technology, manure, etc. and is regularly updated with latest details.
3. IndianOil is in discussion with Skill Council of Green Jobs for development of
National Occupational Standards and Qualification Packages (QPs) for CBG
sector. Skill Council for Green Jobs has developed various Qualification Packs
on different job roles for production and utilization of Compressed Biogas. The
training packages have been submitted for feedback from various Ministries
which are expected to be finalized during meeting proposed on 27.1.2022 by
Ministry of Skill Development”.
1.80 The Committee inquired into the efforts that have been done by MoPNG to createawareness among industries and prospective investors about the SATAT initiative andwhether any meeting has been done with Industry Associations, Chambers, etc to which
the MoPNG in their written reply have submitted that:(i)”The following are the various outreach programmes undertaken to increaseawareness and popularity of SATAT initiative.
1. Series of Road shows on CBG & SATAT initiative were organized at various
cities wherein Industry Associations, Chambers prospective investors, State
Government officials, prospective entrepreneurs, students, academia etc. haveparticipated.
2. A dedicated portal on SATAT initiative (https://satat.co.in) has been prepared.
The portal has details on SATAT initiative documents, financing of CBG Plants,
technology providers, enablers on CBG, Government Policies, Frequently Asked
Questions, details on manure marketing. The portal has detailed learning
modules on CBG technology and financing. Entrepreneurs can pose questions
on the portal for clarification on SATAT initiative. Grievances can also be
submitted at the portal for time bound resolution.

3. Series of Technical Seminars conducted for Industries, entrepreneurs, supply
chain networks, etc. on various aspects of CBG Plants including technology,
finance and marketing.
4. Radio Jingle in Hindi and regional languages (Marathi, Tamil, Telugu, Kananda,
Bengali, Oriya, Malayalam etc) has been broadcasted on SATAT initiative.
5. Environment Day Celebrations were held on SATAT initiative where Hon’ble
Prime Minister held live discussions with CBG Plants in presence of various
stakeholders.
6. City wise exhibitions are being held on Biofuels & SATAT as part of Azadi Ka
Amrit Mahotsav celebrations.
7. A Biofuels exhibition was held at Mahoba, Uttar Pradesh on Biofuels Day viz.
10.8.2021 which was inaugurated by Hon’ble Chief Minister of Uttar Pradesh.
SATAT initiative was prominently displayed at the exhibition.
8. Awareness on SATAT initiative is being generated through social media”.

Research & Development
1.81 The Committee sought to know whether any research and development is being
undertaken by any agencies to reduce the cost of production of CBG and improve
efficiencies of the CBG plant so that the rate of return is made more attractive for theentrepreneurs to which the MoPNG in the written reply have submitted that:“IndianOil R&D Centre has developed IBG-Max, IBG-Plus and BioXeed
technologies on CBG. IndianOil is finalizing offering of technology for setting upof CBG Plants, inoculums for enhancing CBG production from CBG Plants andadditives for enhancing quality of Fermented Organic Manure. This shall increase
the viability of CBG Plants and provide more attractive returns to entrepreneurs.
HPCL R & D has undertaken research activities related to the development of atechnology for converting lignocellulosic biomass into CBG. The technology
called as HP-RAMP is being scaled up. Various Government Institutes like IIT
Delhi, IICT-Hyderabad and other private agencies are also engaged in R&D workon CBG”.
In order to facilitate off-take of CBG, MoPNG has issued guidelines forsynchronization of CBG produced under the SATAT initiative meeting thetechnical standards with the natural gas in CGD network. GAIL has been given
responsibility for operationalization of the guidelines. As a consequence of thesame CBG Injection of CBG in CGD network has been started at Nadiad, Gujarat
and about 0.16 MMS CM CBG supplied”.

OBSERVATIONS/RECOMMENDATIONSPART IIRECOMMENDATION NO.1
IMPLEMENTATION OF SATATThe Committee note that India is one of the fast growing economies in theworld and energy availability is a major component for any growing economy.
Considering that the country is dependent to a large extent on import of crude oilfor its hydrocarbon needs, it is vulnerable to the volatility of crude oil prices in
the international market and this necessitates the nation to develop a strategy toinsulate the economy by developing domestic ally produced alternative fuels.
The Government of India has planned to promote usage of natural gas and toincrease the share in energy mix from the current level of around 6.7 percent to15 percent by 2030.
The Committee further note that the National Policy of Bio fuels 2018 aims
to increase the role of Bio fuels in the energy and transport sector of the country
and that the Ministry of Petroleum and Natural Gas has launched the Sustainable
Alternative Towards Affordable Transportation (SATAT) initiative in October 2018
which envisages developing 5000 CBG plants with total production capacity
equivalent to 54 MMSCMD of gas by 2023-24.

SATAT offers an investment

potential of Rs. 1.75 lakh crores and generate about 75,000 direct employment.
The initiative promotes use of Compressed Bio Gas (CBG) in the CNG(transport) and PNG (Piped Natural Gas) sector of City Gas Distribution (CGD)
supplies and is produced from agriculture residues, animal dung, food waste,
Municipal Solid waste (MSW) and sewage water. This initiative also integrates theother objectives of the government namely doubling of farmers income, import
reduction, employment generation, waste to wealth creation, etc, and which canhelp the country in meeting the commitments.
The Committee however note with regret that out of an ambitious target ofdeveloping 5000 CBG plants by 2023-24, only about 40 CBG plants have been set
up so far which indicates that lots of ground need to be covered under SATAT
scheme which is burdened by lack of clarity, procedural hurdles and has notenthused the investors/entrepreneurs to come forward to establish CBG plants
so far. The Committee while observing that MoPNG is approaching this scheme

as a waste to energy or waste Management initiative for agricultural residue,
desire that the Ministry should change its vision of SATAT as an initiative to
produce natural gas domestically in a green and clean form.
The Committee, appreciate SATAT as a path breaking and transformational
initiative of the Ministry and hope that if successfully implemented, SATAT would
strengthen self reliance to meet the energy demands of the country. The
Committee would, however, caution the Ministry not to rest on its laurels on the
success in Ethanol Blended Petrol (EBP) programme but take proactive steps andbe responsive to make the SATAT initiative successful too and recommend thatit should ensure successful implementation by reviewing the progress at regularintervals and address various impediments that pulls back achieving of targets
set under this initiative.
RECOMMENDATION NO. 2
REVIEW OF LETTER OF INTENTS
The Committee note that under the SATAT initiative, the productionof CBG would have multiple benefits vis-à-vis reduction of natural gas import,
reduction of green house gas (GHG) emissions, reduction in burning ofagriculture residues, effective waste management, etc. The Committee further
note that Oil and Gas Marketing Companies (OGMCs) invite Expression ofInterest (EOI) from potential investors/entrepreneurs to procure CBG for further
selling to automotive and commercial customers. Indian Oil Corporation is thenodal

company

for

SATAT

coordination.

The Committee have been informed by the Ministry that as on 1stJune 2022, a total of 3263 Letter of Intents (LoIs) have been issued by the Oil
PSU's. Number of cases where land has been finalized is 328 and 97 LoIs haveachieved financial closure.

The Committee observe that 35 CBG plants havebeen commissioned so far and around 40 plants are expected to becommissioned by March 2023.
The Committee observe that the same entrepreneur/investor has been
issued a large number of Letters of Intents (Lols) and the reason given for issueof such multiple LoIs is that the project involves getting clearances, approvals
and many other supply chain issues and the plant can be set up as and when thenecessary approvals are available in a given location. However the Committee
have been informed by the entrepreneurs that the banks are not extending loans

for more than one project to the entrepreneur who is holding multiple Letters of
Intents (Lols). The Department of Financial Services state that PSU Banks would
like to see the execution of a few CBG plants to which they have already extended
the loan.
However, the Committee suspect that the PSUs had issued multiple Lettersof Intents (Lols) just to show that the targets under SATAT are on course of being
achieved as it is evident that the same entrepreneur will not get finance fordifferent projects from banks without providing

adequate security andguarantees. The fact that out of 3263 Letters of Intents (Lols), hardly 40 plants
have been commissioned with less than 24 months to go speak volumes of the
progress made. Therefore, the Committee desire that there should be proper
guidelines for issuance of Letters of Intents (Lols) to entrepreneurs including at
multiple locations
The Committee deplore MoPNG/ PSU’s for such deceptive methods tomislead about the targets and show that the progress under SATAT is good. The
Committee while acknowledging the impact of COVID, would like the Ministry toreview the Letters of Intents (Lols) issued so far in terms of progress made andtake all corrective actions and aggressively attract new investors/entrepreneurs.
The Committee, therefore recommend that the Ministry should set up a
Committee to review the Letters of Intents (Lols) issued and also to frame
guidelines for issue of fresh Letters of Intents (Lols).
RECOMMENDATION NO. 3
NBCC COORDINATION MECHANISM
The Committee note that the Ministry of Petroleum and Natural Gas is
implementing the National Policy of Bio Fuels 2018 which aims to increase use ofbio fuel in the country. The Committee also note that the success of CBG(SATAT) scheme is very much contingent on the well coordinated efforts among
various Ministries/Stakeholders/Organizations by resolving the challenges andbottlenecks in a time bound manner. This can be achieved by establishing a twoway communication between stakeholders and Govt. and within govt. bodies.
There are roles for several Ministries for successful implementation of the CBG
project and coordination amongst different Ministries is essential.
The

Committee

observethatthe

National

Bio

Fuel

Coordination

Committee(NBCC) is already in place as a coordination mechanism which hasrepresentatives from various Ministries and headed by the Hon’ble Minister ofPetroleum and Natural Gas to provide overall coordination, effective end-to-end
implementation and monitoring of bio fuels.

The Committee, however, find it

surprising to note that since its inception, NBCC has held only one meeting tilldate which refletcts the lack of seriousness by the Ministry to this mechanism for
SATAT initiative. The Committee would, therefore, recommend that the MoPNG
should convene meetings of NBCC at regular intervals to sort out issues in
implementation of the programme and may also form sub committees involving
the concerned Ministries to sort out specific and pointed issues.
RECOMMENDATION NO. 4
SINGLE WINDOW CLEARANCEThe Committee note that the Compressed Bio-Gas (CBG) plants needvarious approvals and clearances from different agencies of Central, State Govt.
and local administration. The Committee note that the implementation of CBG(SATAT) has been delayed due to multiplicity of agencies involved in granting
clearances and permissions. Self certification and undertaking may also be
studied for feasibility in place of mandatory approvals and NOCs etc. as the casemay be.
The Committee exhort the Ministry to consider issuing a blanket approval
or with a half-yearly/yearly reconciliation mechanism and a forum for joint
consultative mechanism involving elected representatives from local andstate/district level should be evolved to iron out all the differences arising among
various agencies and in this regard, there can be a “Infrastructure Approvals
Committee” at State/District level which can take up such clearances and fast
track them. The Committee observe that the Ministry should Coordinate withvarious Government Departments/Agencies including Financial institutions, State
Governments and other stake holders to arrange and implement various enablers
for development of CBG sector and Expeditious allocation of land to CBG
producers by the State Government would be helpful in developing CBG Projects.
CBG (SATAT) is of national importance and therefore, there is a need tobring uniformity in permissions and clearances from various central / state / local
bodies / departments to lay pipeline network. In order to streamline the processof approvals, the Committee desire that deemed approval mechanism should be
put into place so that the necessary clearances and NoCs may be obtained in a

defined time period. The Committee, therefore, recommend that the Ministry
should strive for a single-window mechanism for a fast track system of obtaining
approvals and clearances which will help in reducing the time to process suchpermissions.
RECOMMENDATION NO. 5
CENTRAL FINANCIAL ASSISTANCE (CFA)The Committee note that Ministry of New & Renewable Energy (MNRE) was
implementing a scheme called Central Financial Assistance (CFA) for extending
support to new and renewable energy projects. The Committee note that sinceApril 2021, the Central Financial Assistance program for biogas/CBG projects has
been discontinued and this has served as a major setback to the industry. The
Committee have learnt that the CBG plants fall under new and renewable energy
category and hence these plants are entitled for CFA. However, as the scheme is
not in place, this facility is denied to entrepreneurs who come forward to set up
CBG plants. The Committee strongly feel that to mainstream the industry, whichis still in its introductory/nascent stage, the continuation of CFA scheme isimportant. The Committee recommend that MOPNG should take up with MNRE
and Ministry of Finance for reintroduction of this Central Financial Assistance
Scheme to incentivise and enthuse entrepreneur to set-up of CBG plants in the
country.
The Committee also desire that MoPNG may consider to move towards Generation
Based Incentive (GBI) instead of Capex-based subsidy for CBG plants which will provide
incentives for producing gas and keep the plants running and functional rather than justsetting up the plant. The Committee would like determination of appropriate GBI(price/per Kg of CBG) under different feedstocks to be estimated by the Ministry in thisregard.
RECOMMENDATION NO. 6
FINANCIAL INSTITUTION FOR PETROLEUM SECTOR
The Committee note that there are many projects which are being
implemented by the MOPNG to enhance the energy security of the country in thehydro carbon area including bio fuel projects for blending with petrol, diesel andgas. The Committee feel that with the plethora of initiatives being taken up by the
Ministry, there is a need for financing these activities particularly at the initialstage by understanding the risks and reward associated with the project for
which the expertise is available in the Oil PSUs who are operating for a long timein this sector. The Committee, therefore desire that the Oil PSUs which havestrong cash flows and healthy balance sheets and consistently profit making
should come forward to setup a financial institution for financing all bio-fuel andclean energy projects that are launched or likely to be launched in the future by
the Ministry.
There are institutions like Power Finance Corporation (PFC), Rural
Electrification Corporation (REC), Housing & Urban Development. Corporation(HUDCO), Indian Renewable Energy Development Agency (IREDA) etc. in different
Ministries of the Government for financing and monitoring specific sector
projects. The Committee would desire the MoPNG should nudge the petroleum
sector oil PSUs to establish a financial institution owned and managed by themas shareholders which will focus on clean, green and renewable energy bio fuelprojects taken up by Ministry of PNG like Ethanol production for Ethanol Blended
Petrol (EBP), Bio-diesel Projects, CBG projects, etc,. The Committee, therefore,
recommend that Ministry should set up a PSU financial institution for funding oil
and gas sector project under its administrative control.
RECOMMENDATION NO. 7
BIO FUEL INFRASTRCUTURE FUND
The Committee note that the SATAT scheme is a laudable and ambitious
initiative of the Government which can help the country to meet its energy
requirements and strengthen the energy security. However, the action taken by
the Ministry of Petroleum & Natural Gas to implement the scheme have been very
lukewarm and indifferent. The Committee would still give the benefit of doubt to
the Ministry as the country was fighting the Covid pandemic during the last two
years.

However, as the situation has improved to a considerable extent andeconomic activities have picked up, the Ministry should now focus on taking
necessary steps to see that the SATAT initiative is implemented and all objectives
and targets are met.
The Committee note that an scheme that may be replicated in this regard is
the AIF (Agriculture Infrastructure Fund) facilitated by NABARD and the Ministryof Agriculture. In this regard, the Committee are of the view that a fund in thename of Bio Fuel Infrastructure fund in the Ministry of Petroleum and Natural Gas

may be created in a suitable way either from Oil Industry Development Board(OIDB) funds or budgetary allocations for development of this sector quickly andwithout waiting for other government agencies to finance them. Ministry may
furnish the action taken in this regard.
RECOMMENDATION NO. 8
COLLATERAL SECURITY FOR CBG PROJECTSThe Committee note that Reserve Bank of India has included CBG projects
under Priority Sector Lending and public sector banks are extending loans to
CBG plants. Canara Bank has been nominated as Nodal Banker under SATAT.
State Bank of India, Bank of Baroda, Canara Bank and some other banks havedeveloped exclusive loan product for financing of CBG projects. World Bank,
ADB and JICA are working for Detailed Project Report for multilateral cheaper
credit to CBG plants.
However, the Committee note that the banks are not extending loans formore than one project to the same entrepreneur who is holding multiple LoI
issued by Oil and Gas Marketing (OGMCs) companies. The Department of
Financial Services state that they would like to see the execution of these plants
to which they have already extended the loan.

One of the hurdles faced byentrepreneurs is that the banks seek collateral security for financing the projects.
The Committee have been informed by the entrepreneurs that the gas purchaseagreement between the Oil and Gas Marketing Companies (OGMCs) and CBGplant operators for taking up the entire off-take of the gas at pre-determined priceshould also be taken into consideration by the Banks as a means of security and
if required an escrow account between the three parties namely, CBG Plants
Management, OGMCs and banks can be entered into where the banks may get
their loan service from this account. The Committee are of the view that there is
merit in this suggestion and recommend that MOPNG should hold consultation
with Ministry of Finance on this issue and ease the collateral security burden on
the entrepreneurs as in done under Ethanol Blended Petrol (EBP) Progamme.
RECOMMENDATION NO. 9
INVESTMENT IN CBG PROJECTS BY OIL PSUS
The Committee note that CBG projects are being implemented with the
expectation that private entrepreneurs and investors will come forward and therole of oil PSUs shall be to provide support to these projects in the form ofassured offtake of CBG produced from these plants.

The Committee observethat IOC has invested in 5 CBG projects and GAIL and HPCL in one each whereas
the upstream PSUs like ONGC and OIL which have specific mandate relating to
production of natural gas and marketing of natural gas respectively have notinvested in any project so far. The Committee find it surprising to note that PSUs
are not interested in setting up of CBG projects on their own despite domestic
natural gas production being a mandate of the upstream oil PSUs. The
Committee, therefore, would like Oil PSUs to aggressively enter into CBG sector
through company owned company operated (COCO) model or joint ventures withother OMCs/entrepreneurs.
Further, the OMCs also have a responsibility to meet the LPG demand in
the country both in domestic and commercial sector and a large part of their LPG
requirement

is imported to meet the demand .These companies have restricted

themselves to buy the Bio- gas from the CBG projects. The Committee feel this is
unacceptable and want all the PSUs to invest and promote CBG projects
seriously with their own investment. The Committee also expect that the Ministry
should persuade the oil PSUs particularly upstream oil PSU's like ONGC, OIL and
GAIL in particular to set up a good number of CBG projects in the country as thisfalls within their mandate of producing natural gas.

The PSU's with theirprofessional and project management competence should set aside sizeable fundfor investment in these projects and able to execute the projects in time boundand efficient manner. This will also demonstrate the viability of these projects
and will give confidence to investors.

This will also allow the PSUs and theMinistry to gain valuable experience to sort out various issues and put in placerequired policy measures to ensure that the CBG initiative is successfully
implemented and enhance the energy security of the nation. Therefore, theCommittee recommend that all the OIL PSU's should seriously look into SATAT
initiative and invest in CBG plants with their own funds.
RECOMMENDATION NO. 10
ESTABLISHING A CREDIT GUARANTEE FUND (CGF)
The Committee note the Entrepreneurs are facing huge problems in getting
financial assistance for CBG plants. The Committee feel that lack of credit is one of the
major factors due to which not many CBG plants have come up and therefore there is anurgentneedtoaddress

accesstocreditbyevolving

innovative

financialmechanisms/products. The Committee suggest that there should be a Credit Guarantee
Fund (CGF) established for CBG project financing, like the one launched under Credit
Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) by Small Industries
Development Bank of India (SIDBI) and Government of India for stimulating collateralfree lending to Micro Small and Medium Enterprises (MSME) borrowers and the same canbe thought for CBG projects as well. This shall enable risk reduction of and instill
confidence in the Financial Institutions for undertaking credit exposure in the CBG
industry.
The Committee also recommend that there can be refinancing of loans by Indian
Renewable Energy Development Agency Limited (IREDA) under MNRE that can directly
enter into MoU with Public Sector Banks wherein every CBG project that meets certain
basic needs (for being qualified as a potent project) would be provided the benefit ofconcessional rate lending by IREDA via the bank/NBFC for onward lending.
RECOMMENDATION NO. 11
ASSURED BIO-MANURE OFFTAKEThe Committee note that one of the major by-products of the CBG plants is the Biomanure and there is no assurance for off take of bio manure or any other long term
supply agreements at a reasonable and marketable price. The CBG plants cannot
sustain themselves solely through production and marketing of Bio-gas and hence sale ofbio manure will enhance the financial viability of CBG plants. The Committee also notethat this bio-manure can solve the problems of nutrients of soil and also improve the soil
health bringing innumerable benefits to the agriculture sector also. The Committee feelthat a holistic view must be taken off the CBG plants and Bio-manure must be seen as
revenue stream of CBG projects. The Committee further desire that in order to promote
and popularize use of organic manure there should be clear earmarking ‘Production
date’ and ‘Best used before date, safety measures and means to prevent nutrient loss
during transportation and similar other measures to educate and create awareness inthe public domain so that there is no apprehension regarding their use.
MOPNG in coordination with Ministry of Agriculture through its agriculturalextension machinery including Krishi Vikas Kendras (KVK), FPO, etc. must makespecial efforts to propagate utilization of ‘Organic Ferment Manure’ on farmland. The
Committee therefore recommend that MoPNG should devise a mechanism inconsultation with Dept of Agriculture and Dept of Fertilisers to ensure assured off-takeof bio-manure of entire quantity of CBG with long term agreement including the priceand agencies assigned for purchase of bio manure to attract investment in this sector.
RECOMMENDATION NO. 12
QUOTA FOR BIOMETHANE INJECTION IN NATURAL GAS GRIDThe Committee feel that Ministry should reorient its approach and the various
facets of the scheme must be fully addressed and utilized. As the sources of CBG arediversed and scattered, the CBG plants must be seen as decentralized gas fields. The
Committee feel that this will enhance the domestic gas production as the targets under
CBG (SATAT) are equal to the current domestic natural gas production. The success of
SATAT for sure will reduce dependence on import of natural gas and simultaneously
generating new sources of income and employment within the country.
The Committee desire that the CBG plants with varying capacities must be
channelized/synchronized with National Gas Grid. The Committee has learnt that Gas
Utility major, GAIL (India) Limited is already in the process of finalizing the operational
modalities for the supply of CBG co-mingled with domestic gas. The Committee suggestthat while the process for the same may be expedited, there should be a uniform price ofCity gas/ PNG across all CGD entities (private/PSUs). One such mechanism to arrive at a
uniform gas price may be through a gas pool pricing mechanism, as is presently applicablefor Natural Gas supply to Fertilizer plants.
The Committee also recommend that there should be phase-wise (short term andlong term) blending quota/mix of co-mingled CBG in the total domestic gas supply to the
CGD sector. The success of ethanol blended petrol and diesel has already laid theprecedent and the same may be adopted in this case as well.

RECOMMENDATION NO. 13
CBG OFF-TAKE PRICE
The Committee note that the CBG plants have very low internal rate of return(IRR) and the CBG pricing needs to be remunerative to the marketing companies. The
Committee appreciate the efforts made by the Ministry in raising the CBG prices to Rs.
54/kg plus GST and also pegging CBG prices with that of CNG this is expected to provide acushion to marketing companies. The Committee however, are concerned to observe that
this pricing does not take into account the feedstock by which CBG is produced. The
Committee have learnt that this uniform pricing incentivizes certain feedstocks while
discouraging others. The present benchmarking of CBG prices under SATAT to the CNG
prices is a much-appreciated initiative towards achieving fair pricing of CBG. However,the pricing needs to be more robust and flexible upon factoring in the cost economics of a
CBG plant for different feed stocks as well.
The Committee desire that a guideline needs to be issued by MoPNG in
coordination with various agencies w.r.t. appropriate Market price for CBG that ensuresthe viability of a CBG plant, creating transparency in rational price discovery andpromoting long-term investment plans of investors/promoters. The Committee further
recommend that the Ministry should establish the pricing mechanism of CBG produced
from different types of feed stocks and cues can be taken from the differential pricing(FRP) mechanism for bio-ethanol from different grades of molasses and a similar approach
can be replicated in the case of CBG sector as well.
RECOMMENDATION NO. 14
MARKET DEVELOPMENT ASSISTANCE FOR BIO MANURE
The Committee note that in the CBG plants, one of the revenue streams isselling of Bio-manure which is a bye product in the production of CBG. The
Committee further note that the OGMCs under the MoPNG have alreadyannounced the price for purchase of CBG. The Ministry of Chemical andFertilizers has also issued notification under Fertilser Control Order (FCO) to treat
the Bio-slurry as organic Bio-manure. The Committee note that the market
development assistance was provided by the Department of Fertilisers forpromotion and consumption of city compost has been discontinued after 30
September 2021. Therefore, the MoPNG should take the matter with Department
of Fertilizers/Department of Expenditure for continuation of market development

assistance for offtake of fermented Bio-manure to ensure balance and integrated
nutrient management for the crops. The Committee therefore recommend that the
MoPNG to persuade Ministry of Finance for MDA for incentivizing CBG
entrepreneurs.
RECOMMENDATION NO. 15
FEEDSTOCKS ISSUES FOR CBG PRODUCTION
The Committee note that the Biomass sources like municipal solid waste,
sewage treatment plant waste, cattle dung, sugarcane press mud, agriculturalresidue etc. are some of the feedstocks to produce Biogas through the process ofan aerobic decomposition. The availability of these feedstocks are varied innature as the municipal solid waste and sugarcane press mud are available formost of the year, whereas, agriculture residue would be available only for coupleof months in a year. This necessitates that CBG plants which use agriculturalresidue as feedstocks may also need huge land parcel to store the agriculture
residue for the remaining part of the year as the residue is available only during
harvest period.
Entrepreneurs who appeared before the Committee stated that there ishuge uncertainty over the supply and price of agriculture residue as the farmers
demand a higher price to supply to the CBG plant. The entrepreneur has limited
choice as the feedstock has to be sourced from neighbouring region andtransportation from longer distances will add the cost of feedstock. The
entrepreneurs demand support from State Governments in the form of assured
raw material supply and also land availability at concessional price for long term
to store the feedstocks. However, the Committee note in the case of municipal
solid waste there are no such problems as most of the cities and towns havehuge land fills with the municipal wastes. Similarly, the sugar factories also hassugar press mud.
Therefore, the Ministry should focus on municipal solid waste and sugarpress mud as the preferred feedstock for setting-up of CBG plant all over thecountry which the Committee feel is a low hanging fruit. The MoPNG should holdconsultation/discussions with Ministry of Urban Development for nudging urban
local bodies to setup CBG plant with the support of Oil PSU's / State
Governments and use Muncipal Solid Waste as feedstock. The CBG from theseplants can be used for urban transport and City Gas Distribution (CGD) network

in these cities. Similarly, the Ministry of Petroleum and Natural Gas

shoulddiscuss with concerned Ministry/Indian Sugar Mills Association (ISMA)/ Sugar
mills to encourage them to invest in CBG plants as well, and sell them to OMCs
with whom they already have good relationship due to ethanol blending
programme, The Committee, therefore,recommend that MoPNG should prioritise
its focus on municipal solid waste and sugarcane press mud as feed stocks topromote the CBG projects and make it a reality and successful rather than focus
on agriculture residue which is saddled with problems .
The Ministry may also rope in urban municipal bodies, agriculture mandis,
cooperative sector, fertilizer companies, Farmers’ Producer Organisations(FPOs), Krishi Vigyan Kendra (KVK), NAFED etc. to promote CBG projects in theirarea of operations.
The Committee recommend the MOPNG to hold consultations with State
Governments and endeavour to constitute State level coordination Committee inall states and to try to impress upon them to fix price for different types of bio
mass so that there shall be no uncertainty about pricing and availability of bio
mass for the CBG plants.
RECOMMENDATION NO. 16
GST ISSUES IN CBG
The Committee note that the Compressed Bio Gas under SATAT isbasically used for bio CNG in transport sector and PNG in the domestic sector.
The Ministry has also permitted the CBG produced from the CBG plants to be
injected into the CGD network under the CBG-CGD Synchronization Scheme andthe responsibility of connecting the CBG plant to the CGD network within adistance of 10 kms. would lie with bio gas producers.
The Committee note that at present various petroleum products are coming
under different tax regimes. Bio gas is under GST and CNG is under excise duty
and when CBG is mixed with CNG which is permitted , then it attracts double
taxation as VAT is also levied in addition to excise duty.

This cascading tax

structure create confusions and the same gas attracts different tax application
which may create complications and litigations and increase the tax burden andend price. The Committee desire that there is a need to have uniformity in the tax
structure on the products likely CBG, CNG, PNG and when CBG is mixed with as

a CNG or PNG.

The Committee, therefore, recommend that the Ministry ofPetroleum and Natural Gas should hold consultations with Department of
Revenue for clarity, rationalizing the tax structure and determination of applicabletax and if required, approach GST Council where required.
RECOMMENDATION NO. 17
TAX ISSUES FOR CBG PLANTS
The Committee note that Section 80JJA of the Income-tax Act, 1961 provides fordeduction of 100% from the profits and gains derived from the business of collecting andprocessing or treating of biodegradable waste for generating power or producing biofertilizers, bio-pesticides or other biological agents or for producing bio-gas or making
pellets or briquettes for fuel or organic manure for a period of five consecutive assessment
years beginning with the assessment year in which such business commences.
The Committee feel that CBG plants must be seen as a sunrise industry andrecommend that special concessions must be provided at nascent stage and unambiguous
continuation of the 80JJA scheme under the new sections in the IT amendment shall be
provided for the ten years which will serve as the much-needed impetus, particularly to theentrepreneurs/ Start-Ups foraying into the industry.
The Committee observe that the GST Council recently notified of escalation of GST
slab from 5% to 12% for biogas plant-related equipment and their parts. This is expected
to provide incentive to the domestic industry to avail the input tax credit under GST
regime. However, the Committee note that, due to these ambiguities, clarifications aresought by Indirect Tax Officials from CBG plants.
The Committee note that clarity in tax issues goes a long way in attracting
investments in a sector. The disparity intax structure for CBG Plants needs to be bridgedwith uniformity in the taxation of Goods and Services for all procurements in CBG
projects. The Committee therefore recommend that these issues should be addressed by
MoPNG in consultation with Department of Revenue.
RECOMMENDATION NO. 18
AWARENESS AND TRAINED MANPOWER
The Committee note that the CBG sector is still in its infancy and there are manyrisks involved in the business leading to a lot of hardships being faced by entrepreneurs
and promoters. There is a lack of credit supply to the CBG sector and it is also plagued bystructural constraints and not yet in a position to come up with a definite revenue stream.

The Committee therefore feel that there is an urgent need to create awareness among
financial institutions regarding the viability and potentialities of CBG sector in generating
employment and income opportunities, however, the gestation period is not fully developedor understood. The Committee also desire that all the bottlenecks and challenges facing theindustry must be identified and modalities and solutions to them be properly identified anddisseminated to the various stakeholders in a coordinated and time bound manner. The
Committee therefore recommend that a proper plan has to be formulated to train the
Financial Institution Officials (across the hierarchy) to dispel the notion of the undue
inherent risk associated with CBG industry.
The Committee further note that the sector is still evolving and there is a lack ofsufficient trained manpower and recommend that MoPNG in consultation with Ministryof Skill Development should prepare a curriculum/training module to impart skills in the
sector to take care of the future manpower needs.
RECOMMENDATION NO. 19
CARBON TRADINGThe Committee note that CBG (SATAT) scheme has immense potential in waste
management in the country. CBG plants have a potential for an efficient management of
stubble burning which causes immense environmental damage and consequently damaging
the image of the country as a whole. An important feature of the CBG plants is that itconverts bio-gas out of multiple feedstocks including waste material and therefore cancontribute immensely towards Swachch Bharat Mission as well.
The Committee recommend that MoPNG in coordination with the MNRE
should evolve a mechanism whereby they assess the carbon footprint that would
be generated had CBG plants not managed the waste material. This will help thenation in achieving India’s commitments of carbon net zero by 2070 made at
COP-26 Glasgow. The carbon credits so generated by CBG plants can bemonetized and improve its financial viability and revenue stream accordingly
which provides a win-win situation for all the stakeholders .
RECOMMENDATION NO. 20
Global Cooperation on Biofuels
The Committee note that India is the third-largest consumer and importerof oil in the world. The Committee note that the Government has announced
National Policy on Biofuels 2018 to promote and include biofuels in the country’s

energy basket to target climate change concerns and also to reduce dependence
on import of crude oil. The NPB-2018 envisages production and blending of
ethanol, biodiesel and CBG as alternative fuels with traditional fuels like Petrol,
Diesel and Natural Gas.
The Committee appreciate the efforts in achieving the 10 per cent ethanol
blended petrol and hope that with a slew of measures being undertaken the targetof 20 per cent blending can be achieved by 2024-25. This is expected to give ageneral boost to Biofuels which will also help achieve carbon reduction goals andcommitments made at CoP26, Glasgow.
The Committee note that many of the countries like Brazil, US, Indonesia,
China and Germany produce biofuels. It is hoped an alliance among suchcountries would create an ecosystem for fuel standards and engines as well as
cooperation for a quicker adoption of latest state of the art technologies. This will
pave way for global cooperation, funding and technology development which will
help other countries also to fight carbon emission and climate change concerns.
The Committee, therefore, recommend that India should pitch for a global
cooperation on Biofuels on the lines of The International Solar Alliance (ISA).

New Delhi;
19th December, 2022
28th Agrahayana, 1944 (Saka)RAMESH BIDHURI,
Chairperson,
Standing Committee on
Petroleum & Natural Gas.

ANNEXURE-I

MINUTESSTANDING COMMITTEE ON PETROLEUM AND NATURAL GAS(2021-22)
SEVENTH SITTING(05.01.2022)
The Committee sat on Wednesday, the 5 January, 2022 from 1100 hrs. to1300 hrs. in Main Committee Room, PHA, New Delhi.
PRESENT
Shri Ramesh Bidhuri-

Chairperson

MEMBERSLOK SABHA
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Smt. Chinta Anuradha
Dr. Ramesh Chand Bind
Shri Naranbhai Kachhadiya
Shri Santosh Kumar
Shri Rodmal Nagar
Shri Mitesh Rameshbhai Patel
Shri Unmesh Bhaiyyasaheb Patil
Shri Chandra Sekhar Sahu
Shri Janardan Singh Sigriwal
Dr. Kalanidhi Veeraswamy
RAJYA SABHA

12.
13.
14.
15.
16.
17.
18.
19.

Shri Birendra Prasad Baishya
Shri Ripun Bora
Shri Om Prakash Mathur
Shri Rambhai Mokariya
Shri Subhash Chandra Bose Pilli
Dr. V. Sivadasan
Shri A. Vijaykumar
Ch. Sukhram Singh Yadav
SECRETARIAT

1.
2.
3.
4.

Smt. Abha Singh Yaduvanshi
Shri H. Ram Prakash
Shri Vinay Pradeep Barwa
Shri Mohan Arumala-

Additional Secretary
Director
Deputy Secretary
Under Secretary

Representatives of the Ministry of P&NG
1.
2.

Shri Pankaj Jain
Dr. Navneet Mohan Kothari-

Secretary
Joint Secretary (Marketing)Representatives of IOCL
1.
2.

Shri S.M. Vaidya
Shri S.S. Pandita-

Chairman
ED (Coord.)

Representatives of BPCL
1.

Shri P.S. Ravi-

ED (Retail)

Representatives of HPCL
1.

Shri D.K. Pattanaik

-

ED
GAIL

1.
2.

Shri Manoj Jain
Shri Sanjay Kumar

-

CMD
ED

2.

At the outset, the Hon’ble Chairperson welcomed Members of theCommittee and representatives of the Ministry of P&NG/Oil PSUs to the sitting of
the Committee and informed that the sitting was convened to have a briefing on
the subject "Review of Implementation of CBG (SATAT)”. Thereafter, therepresentatives of the Ministry got themselves introduced to the Committee andthen, made a power point presentation on the subject.
3.

Thereafter, Members of the Committee raised several issues related to thesubject such as progress made in meeting the targets of CBG, various
bottlenecks being faced in the implementation of the scheme, efforts made topopularize the scheme, number of entrepreneurs and CBG plants under thescheme, financial incentives to promote participation, involving MoHUA and
MNRE for an effective implementation of the scheme, timeline for commissioningof Letters of Intent (LoIs), reasons for setting up of only 16 CBG plants against
2744, utilization of CSR funds for promotion of the scheme, evolving interdepartmental coordination for monitoring, revival of closed biogas plants,
management of stubble burning and agricultural waste through CBG, financial

viability of CBG plants for promotion of entrepreneurship, cluster based approach
involving various villages for CBG plants, integrated processing of biomass
including municipal solid waste, training of manpower in coordination with the
Ministry of Skill Development.

4.

Thereafter, the Chairperson thanked representatives of the Ministry of P&NG/Oil

PSUs for expressing their views and answering queries raised by the Members of theCommittee. Further, to the queries where replies were not readily available, the Ministry
was instructed to furnish the same to the Secretariat within ten days.
5.

A copy of the verbatim proceedings is kept in the Branch for record.
The Committee then adjourned.
****

ANNEXURE-IIMINUTESSTANDING COMMITTEE ON PETROLEUM AND NATURAL GAS(2021-22)
FIFTEENTH SITTING(08.06.2022)
The Committee sat on Wednesday, 8th June, 2022 from 1200 hrs. to 1320
hrs. in Main Committee Room, PHA, New Delhi.
PRESENT
Shri Ramesh Bidhuri-

Chairperson

MEMBERSLOK SABHA
2.

Dr. Ramesh Chand Bind

3.

Shri Girish Chandra

4.

Shri Topon Kumar Gogoi

5.

Shri Naranbhai Kachhadiya

6.

Shri Unmesh Bhaiyyasaheb Patil

7.

Shri M.K. Raghavan

8.

Dr. Bharatiben Dhirubhai Shiyal

9.

Shri Janardan Singh Sigriwal

10. Dr. Kalanidhi Veeraswamy
RAJYA SABHA
11. Shri Birendra Prasad Baishya
12. Smt. Kanta Kardam
13. Shri Om Prakash Mathur
14. Shri Rambhai Mokariya
15. Dr. V. Sivadasan
16. Shri A. Vijayakumar
SECRETARIAT
1. Shri Y. M. Kandpal-

Joint Secretary

2. Shri Brajesh Kumar Singh-

Deputy SecretaryRepresentatives of the Ministry of P&NG
1. Shri Pankaj Jain-

Secretary

2. Dr. Navneet Mohan Kothari-

Joint Secretary

IOCL
1.
2.
3.
4.

Shri S.M. Vaidya
Shri Shantanu Gupta
Shri J.S. Oberoi
Shri Rajesh Nayyar-

Chairman, IOCL
Exe. Director (AE&SD)
Exe. Director (Coordn)
CGM (Coordn)

Representatives of GAIL
1. Shri Manoj Jain
2. Shri M V Iyer-

CMD
Director (BD)

Representative of HPCL
1. Shri Pushp K. Joshi-

CMD

Representative of BPCL
1. Shri Arun Kumar Singh

-

C&MD

Representatives of IGL
1. Shri Sanjay Kumar
2. Shri Sanjeev Bhatia
2.

-

MD
VP

At the outset, the Hon’ble Chairperson welcomed Members of the Committee

and apprised them about the agenda of the sitting i.e. "Review of Implementation of
CBG (SATAT)”.

3.

Thereafter, the representatives of the Ministry of petroleum & Natural Gas

and Oil Marketing Companies (OMCs), GAIL and IGL were called in. Aftercustomary introduction, the representatives of the Ministry made a power point
presentation to the Committee on progress made in the implementation of
SATAT scheme since last sitting of the Committee held on 05.01.2022.
4.

Thereafter, Members of the Committee raised several issues related tovery slow progress of the scheme, very poor response to the Letter of Intents(LoIs) issued by OMCs, availability of finance to entrepreneurs, withdrawal ofgovernment subsidy to CBG plants, coordination with various Ministries, setting

up of single window for regulatory clearances, status of planned CBG projects in
Delhi, prices of CBG being given to producers and mechanism of its fixation, total
production of CBG etc.
5.

Further, the Committee also discussed various issues affecting the

success of the SATAT scheme such as supply and pricing of organic manureand slurry, laying of infrastructure for taking off CBG from plants, injection of
CBG into CNG pipeline, profitability of CBG plants etc.
6.

The representatives of the Ministry/OMCs furnished clarifications to thequeries raised by the Members. On some of the points on which the information
was not readily available with the representatives, the Chairperson asked them tofurnish written replies on the same within 7 days to the Lok Sabha Secretariat.
7.

The Chairperson then thanked the representatives of the MoPNG/OMCs forgiving valuable information on the subject before the Committee.
8.

The witnesses then withdrew.

9.

A copy of the verbatim proceedings is kept in the Branch for record.
The Committee then adjourned.
*****

ANNEXURE-III

MINUTESSTANDING COMMITTEE ON PETROLEUM AND NATURAL GAS(2021-22)
NINETEENTH SITTING(28.07.2022)
The Committee sat on Friday, 28th July, 2022 at 1700 hrs. in Committee
Room ‘D’, PHA New Delhi.
PRESENT
Shri Ramesh Bidhuri-

Chairperson

MEMBERSLOK SABHA
2.

Shri Ramesh Chand Bind

3.

Shri Pradyut Bordoloi

4.

Shri Girish Chandra

5.

Shri Mitesh Rameshbhai Patel

6.

Shri Unmesh Bhaiyyasaheb Patil

7.

Shri M. K. Raghavan

8.

Shri Janardan Singh Sigriwal

9.

Shri Lallu Singh

10. Shri Ajay Tamta
RAJYA SABHA
11. Shri Birendra Prasad Baishya
12. Shri Rambhai Mokariya
13. Shri Subhas Chandra Bose Pilli
SECRETARIAT
1. Shri Y. M. Kandpal-

Joint Secretary

2. Shri H. Ram Prakash-

Director

3. Shri Brajesh Kumar Singh-

Deputy Secretary

Representatives and entrepreneurs from CBG Plants
1

Dr. Jyoti Prakash Das-

Phoenix India R&D Group2Shri Deepak Agarwal-

IL&FS Environmental Infrastructure &Services Limited

3

Shri Rohit Chauhan

4

Shri Ashish kumar-

Verbio India Pvt. Ltd.

5

Dr. A.R. Shukla-

Indian Biogas Association

6

Shri Abhijit Mukherjee

7

Shri Atul Kharate-

IOT Biogas Pvt. Ltd.

Representatives of the Ministry of P&NG
1. Shri Pankaj Jain-

Secretary

2. Dr. Navneet Mohan Kothari-

JS (Marketing & Gas Pricing)

Representatives of PSUs
1
2
3
4
5
6
7
8
9
10
11
12

Shri S.M. Vaidya
Shri Arun Kumar Singh
Shri Pushp K. Joshi
Shri Manoj Jain
Shri Sanjay Jain
Shri M.V. Iyer
Shri Sukhmal Jain
Shri P.S. Ravi
Shri Shantanu Gupta
Shri Dilip K. Pattanaik
Shri Alok K. Gupta
Shri Shuvendu Gupta-

Chairman, IOCL
CMD, BPCL
CMD, HPCL
CMD, GAIL
MD, IGL
Director, GAIL
ED, BPCL
ED, BPCL
ED, IOCL
ED, HPCL
ED, HPCL
ED, HPCL2.

At the outset, the Hon’ble Chairperson welcomed Members of the Committee

and apprised them about the agenda of the sitting i.e. "Review of Implementation of
CBG (SATAT)”.
3.

In the first instance, the stakeholders of CBG plants were called in to give oral

evidence to the Committee. After customary introduction, the representatives of the
CBG plants gave a Power Point presentation with respect to functioning of the CBG
plants. The Committee was also apprised of the various challenges / bottlenecks being
faced in running CBG plants viz discontinuation of Central Finance Assistance (CFA),
non-harmonised GST structure, issues of income tax on CBG, Financial Assistance forsetting up CBG plants, need for pricing on calorific value, introducing interest
subvention scheme, issues of collateral security, indexation of CBG price to CNG etc,.

Subsequently, Members of the Committee raised several issues related to the subject
like the facilities available to entrepreneurs for installing CBG plant, the availability offeedstock and their quality, review of LoI issued, the viability of CBG plants in the
backdrop of wide swings in the price of CNG, the market for organic manure andslurry, the rate of return on the investment, feed-stock based pricing, carbon credit
scheme etc,. The stakeholders from CBG plants provided inputs on hurdles based by
the scheme and also highlighted the various issues hampering the progress of CBG
plants.
Thereafter, the representatives of Ministry of Petroleum & Natural Gas and
IOCL, GAIL, HPCL & BPCL were called in to give clarification on the various
issues raised in the first half of the meeting.
4.

The officials clarified on the various aspects such as establishing an ecosystemfor production of CBG from various waste/biomass sources in the country andenvisaged developing 5000 CBG plants with total CBG production capacity of 15 Million
Metric Tonne Per Annum (MMTPA) i.e. equivalent to 54 MMSCMD of gas by 2023-24,
promoting use of Compressed bio gas (bio-CNG) in the CNG (transport) and PNG(Domestic) sector of City Gas Distribution (CGD).
5.

Further, the need for de-centralized approach for setting up for CBG plants, tie-

up with local municipal bodies/panchayats, synchronizing State and Centre efforts
bringing economy of scale, technological intervention for mixed fuel feeding, bringing
uniformity in taxation for CBG, introducing interest subvention scheme for CBG plants,
encouraging farmers to participate in agricultural waste management through CBG plantalso came up for discussion.
6.

The representatives of the Ministry furnished clarifications to the queries raisedby the Members. On some of the points on which the information was not readily
available with the representatives, the Chairperson asked them to furnish written replies
on the same within seven days to the Lok Sabha Secretariat. The Chairperson thenthanked the representative of the MoPNG/PSUs for providing valuable information on
the subject before the Committee.
7.

The witnesses then withdrew.

8.

A copy of the verbatim proceedings is kept in the Branch for record.
The Committee then adjourned.
*****

ANNEXURE-IV

MINUTESSTANDING COMMITTEE ON PETROLEUM AND NATURAL GAS(2021-22)
TWENTIETH SITTING(04.08.2022)
The Committee sat on Thursday, 4th August, 2022 at 1500 hrs. in Main
Committee Room, PHA New Delhi.
PRESENT
Shri Ramesh Bidhuri-

MEMBERSLOK SABHA
11. Shri Ramesh Chand Bind
12. Shri Girish Chandra
13. Shri Topon Kumar Gogoi
14. Shri Naranbhai Kachhadiya
15. Shri Santosh Kumar
16. Shri Rodmal Nagar
17. Shri Mitesh Rameshbhai Patel
18. Shri M. K. Raghavan
19. Shri Chandra Sekhar Sahu
20. Shri Dilip Saikia
21. Dr. Bharatiben Dhirubhai Shiyal
22. Shri Janardan Singh Sigriwal
23. Shri Vinod Sonkar
24. Shri Ajay Tamta
25. Dr. Kalanidhi Veeraswamy
RAJYA SABHA
17. Smt. Kanta Kardam
18. Shri Rambhai Mokariya
19. Shri Subhas Chandra Bose Pilli
20. Dr. V. Sivadasan

Chairperson

SECRETARIAT
1. Shri Y. M. Kandpal-

Joint Secretary

2. Shri H. Ram Prakash-

Director

3. Shri Brajesh Kumar Singh-

Deputy Secretary

4. Shri Mohan Arumala-

Under Secretary

Representatives of the Ministry of Petroleum and Natural Gas
1

Shri Pankaj Jain-

Secretary

2

Dr. Navneet Mohan Kothari-

JS (Marketing & Gas Pricing)

Representatives of the Department of Financial Services & M/o Finance12.

Shri Suchindra Misra
Shri Bhushan Kumar Sinha-

Addl. Secy
JS

Representatives of the Department of Revenue & M/o Finance12.

Shri G.D. Lohani,
Shri Raman Chopra-

JS (TRU) CBIC
JS(TPL-II) CBDT

Representative of the DAC&FW M/o Agriculture
1

Shri Priya Ranjan,-

JS

Representative of the MNRE
1

Shri Dinesh Dayanand jagdale-

JS

Representatives of the Department of Fertilizers & M/o C&F
1.

Ms. Neeraja Adidam-

JS

Representatives of GAIL & IOCL1234

Shri Manoj Jain
Shri M.V. Iyer
Shri Sujoy Choudhary
Shri Shantanu Gupta-

CMD, GAIL
Director (BD), GAIL
Director (P&BD), IOCL
ED, IOCL2.

At the outset, the Hon'ble Chairperson welcomed the Members to the sitting of

the Committee. The Committee then took up for consideration the draft Action Taken
Report on the recommendations contained in the Tenth Report (17th Lok Sabha) on‘Demands for Grants (2022-23) of MoP&NG’ and adopted the same without any
modifications.
3.

Thereafter, the Committee took up for consideration Draft Action Taken Reporton the recommendations contained in the Eleventh Report (17th Lok Sabha) on thesubject ‘National Gas Grid including PNG and CNG’ and adopted the same without any
modifications.
The Committee then authorised the Chairperson to present/lay the reports inboth the Houses of Parliament.
(The witnesses were then called in)
4.

Subsequently, the Hon’ble Chairperson welcomed Members of the Committee

and apprised them about the agenda of the sitting i.e. "Review of Implementation of
CBG (SATAT)”. Thereafter, the representatives of the MoPNG, M/o Finance, M/o
Chemicals & Fertilizers, MNRE, M/o Agriculture & Farmer’s Welfare were called in togive oral evidence to the Committee. After customary introduction, the Committeesought clarification on various issues such as stoppage of Central Financial Assistance,lack of clarity on income tax exemption, increase in GST rates on machinery and lack ofclarity on definition of machinery, differential prices being paid for CBG by OMCs and
GAIL, lack of infrastructure for CBG offtake, payment of uniform price for different raw
material based CBG, marketing of organic manure produced as by-product, availabilityof finance, land

and raw materials and the various steps taken to establish an

ecosystem for production of CBG. Further, transportation on CBG establishment ofcredit guarantee fund, need for revision of Letters of Intents (LoIs), pricing of agriculturalresidue/crop stubble, integrating Common Service Centre (CSC), Village Level of
Entrepreneur (VLE), Co-operative societies and Farmers Producers Organizations(FPOs), Subsidy for CBG plants, licensing and offtake of fermented/liquid bio-manure,steps taken for establishing single window clearance system, financial assistance, CBG
plants were also taken up by the Committee.
5.

The representatives of the Ministry furnished clarifications to the queries raisedby the Members. On some of the points on which the information was not readily
available with the representatives, the Chairperson asked them to furnish written replies
on

the

same

within

seven

days

to

the

Lok

Sabha

Secretariat.

The Chairperson then thanked the representatives of the various ministries for providing
valuable information on the subject before the Committee.
The witnesses then withdrew.
6.

A copy of the verbatim proceedings is kept in the Branch for record.
The Committee then adjourned.
*****

ANNEXURE-V
MINUTESSTANDING COMMITTEE ON PETROLEUM AND NATURAL GAS(2022-23)
SIXTH SITTING(19.12.2022)
The Committee sat on Monday, the 19 December, 2022 from 1530 hrs. to 1600 hrs.
in Committee Room D, Parliament House Annexe, New Delhi.
PRESENT
Shri Ramesh Bidhuri
MEMBERS

Chairperson

LOK SABHA

2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

Dr. Ramesh Chand Bind
Shri Girish Chandra

Smt. Chinta Anuradha
Shri Dilip Saikia
Shri Topon Kumar Gogoi
Shri Naranbhai Bhikhabhai Kachhadiya
Dr. Kalanidhi Veeraswamy
Shri Santosh Kumar
Shri Rodmal Nagar

Shri Mitesh Rameshbhai Patel
Shri M.K. Raghavan
Shri Janardan Singh Sigriwal

Shri Lallu Singh
Shri Ajay Tamta
RAJYA SABHA

16. Shri Mithlesh Kumar
17. Shri Rambhai Harjibhai Mokariya
18. Dr. Sasmit Patra
19. Shri Ravichandra Vaddiraju
SECRETARIAT
Joint Secretary

1. Shri Y. M. Kandpal

2.

2. Shri H. Ram Prakash-

Director

3. Shri Brajesh Kumar Singh-

Deputy Secretary

At the outset, the Hon'ble Chairperson welcomed the Members to the sitting of theCommittee. The Committee then took up for consideration the draft Report on the subject“Review of Implementation of CBG (SATAT)”.
3.

The Committee adopted the draft Report without any modifications and authorised the

Chairperson to present/lay the reports in both the Houses of Parliament.
The Committee then adjournedAppendix-I
List of CBG Plants commissioned/ initiated supply of CBG under SATAT initiative:
Designed
LOI
CBG
issuin Name of the
Final
Sr
District
State
Feed Stock Productiogproject
Productn Capacity
OGMC
(TPD)
Noble
Exchange
Maharas1
IOCL Environment
Pune
Food Waste
14
CBG
htra
Solutions
Pune LLP
Spectrum
Renewable
Maharas2
IOCL
KolhapurPress mud
6
CBG
Energy Pvt.
htra
Ltd.
IOT Biogas
Tamil
Pressmud/P
3
IOCL
Namakkal
15
CBG
Pvt. Ltd.
Nadu
oultry Litter
CattleGreen Earth
Dung/Potato
Surendran
4
IOCL Biogas Pvt.
Gujarat
waste
5
CBG
agar
Ltd.
5

IOCL

6

IOCL

7

IOCL

8

IOCL

9

IOCL

10

IOCL

11

IOCL

12

IOCL

BleachEnergyGlow Green
BiotechSpectrum
Renewable
Energy Pvt.
Ltd.
Sri Lakshmi
Venkateshw
ara Green
Crops Power
Projects Pvt.
Ltd.
ClarusBioenergy
Pvt. Ltd.
Akshar
BiotechPrivateLimitedT R Mega
Foods andBeverages
LLP
SolikaAnand

GujaratSurat

Gujarat

RohtakHaryana

Y.S.R
KadapaAnimalWaste
MSW/Cattle
Dung

2

CBG

2.1

CBG

Pressmud/C
attle Dung

6

CBG

AndhraPradeshPress mud3

CBG

Sangli

Maharashtra

Press mud

4

CBG

Surat

Gujarat

Vegetable
Waste

2.2

CBG

Ludhiana

PunjabAnimal
Waste

5

CBG

Hyderaba

Telangan

Animal

2

CBG

Sr

LOI
issuin
g
OGMC

13

IOCL

14

IOCL

15

IOCL

16

IOCL

17

IOCL

18

IOCL

19

GAIL

20

GAIL

21

GAIL

22

GAIL

23

GAIL

Name of the
project
Energy Pvt.
Ltd.
IndianPotashLimitedVyzag BioEnergy Fuel
Pvt. Ltd.
Leafiniti
Bioenergy
PrivateLimitedEnergimSustainable
SolutionsCuddalorePv
t. Ltd.
Verbio India
Pvt. Ltd.
Sobti
Engineering
Works Pvt.
Ltd.
Shri
Govardhann
athji
Energies
LLP
Gobardhan
VaranasiFoundation
SPV
Hyderabad
Integrated
MSW
Limited
IL&FS
EnvironmentalInfrastructure & Services
LimitedMahindra
Waste toEnergyDesigned
CBG
Production Capacity
(TPD)

Final
Product

District

State

Feed Stock

d

a

Waste

Muzaffarn
agar

Uttar
PradeshPress mud

9

CBG

Visakhapa
tnam

AndhraPradeshMunicipal
Solid Waste
(MSW)

2

CBG

Bagalkot

KarnatakaPress mud

10.2

CBG

Cuddalore

Tamil
Nadu

Press mud

10.6

CBG

Sangrur

PunjabAgri Residue

30

CBG

Ghaziabad

Uttar
PradeshCattle Dung

2.4

CBG

Kheda

GujaratAgriculture
waste

8

CBG

Varanasi

Uttar
PraesdhCattle dung
and other
waste

2

CBG

HyderabadTelangana

MSW andothers2

CBG

IndoreMadhyaPradeshBiodegradable
waste

19.7

CBG

IndoreMadhyaPradesh

MSW

0.7

CBG

Sr

LOI
issuing
OGMC

Name of the
project
Solutions
LimitedAnarobic
EnergyPrivateLimitedJPS
Agrotechs&
Farms,
RohtakSama
chemo
pvt.Ltd.
,Sangli
SiddapurDistilleries
Ltd.,
BagalkotApex Green
EnergyCorporation,
Bharuch
Aryan
AssociateandCompany ,UjjainJakraya
Sugar Ltd.
Aryan
AssociateandCompany,
Vadodara

District

State

Feed Stock

Designed
CBG
Production Capacity(TPD)

Haridwar

UttarakhandSewageSludge,Press mud
etc.

2.8

CBG

RohtakHaryana

Cattle Dung

2

BiogasSangali

Maharashtra

Press Mud

8

BiogasBagalkot

KarnatakaPress Mud

8

BiogasBharuchGujaratPress Mud

5.6

BiogasUjjainMadhyaPradeshCattle Dung

2

CBG

Solapur

Maharashtra

Spent –wash

7

CBG

Vadodara

Gujarat

Vegetable
waste

2

CBG

Final
Product

24

GAIL

25

BPCL

26

BPCL

27

BPCL

28

BPCL

29

BPCL

30

BPCL

31

BPCL

32

HPCL

SLR Energy

Cuddalore

Tamil
Nadu

Multiplefeedstock

2.8

CBG

33

HPCL

Phoenix
India R & D
Group

BirbhumWest
BengalCattle Dung

6

CBG

34

HPCL

Mahasankh
Energy LLP.

Vellore

Tamil
Nadu

2.8

CBG

35

IGL

PS
Greengas

Muzaffarn
agar

Uttar
Pradesh5

CBG

Press mud /Vegetable
Waste
180-200
TPD ofPress Mud

Sr

LOI
issuing
OGMC

Name of the
project

District

State

Feed Stockand
Cowdung

Designed
CBG
Production Capacity
(TPD)

Final
Product