Lok Sabha Question No. 1925 (UNSTARRED), answered on 2023-12-14
Subject: Compressed Bio Gas Projects
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Balashowry Vallabbhaneni

## LOK SABHA UNSTARRED QUESTION NO. 1925 TO BE ANSWERED ON 14 th  DECEMBER, 2023 Compressed Bio Gas Projects

## 1925. SHRI BALASHOWRY VALLABHANENI:

## पेोलयम और ाक ृ तक गैस मंी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

(a) the extent to which Compressed Bio Gas (CBG) Projects under priority sector lending helps the country to achieve targets;

(b) the details of banks that have developed exclusive loan products for financing CBG projects;

(c) the details of States where his Ministry constituted State Level Committees to push Sustainable Alternative Towards Affordable Transportation (SATAT) Scheme;

(d) the steps taken/proposed to be taken to push SATAT in other States;

(e) whether the said steps would help to achieve five per cent blending of biodiesel in diesel by 2030;

(f) if so, the details thereof and the reasons for drastic fall of biodiesel production from 36 crore litre in 2019-20 to 4.3 crore litre in 2021-22; and

(g) the total production of biodiesel during theYear 2022-23 and the first six months of 2023-24?

## ANSWER

## पेोलयमऔराकृ तकगैसमंालयमरायमंी ( ीरामेवरतेल )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI RAMESWAR TELI)

(a) CBG projects falls under Agriculture infrastructure as per RBI guidelines.Loans to agriculture infrastructure  are  being  classified  under  priority  sector  lending  which  has  encouraged  banks  to sanctions loans for CBG projects. As on 01.11.2023, fifty CBG projects supported with both equity of  project  proponent  and  debt  support  from  financial  institutions,  have  been  commissioned  with total production capacity of about 300 tonne per day.

(b) Major banks like, Canara Bank, State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Union Bank of India, Indian Bank, Punjab & Sind Bank, UCO Bank have developed exclusive loan product/scheme for financing CBG projects.

(c) State Level Committees have been constituted for implementation and monitoring of SATAT initiative  in  States  of  Andhra  Pradesh,    Chhattisgarh,  Gujarat,  Haryana,Maharashtra,  Punjab, Tripura,Uttar Pradesh, and West Bengal.

(d) Government has taken various steps to support SATAT on Pan India basis, including Central Financial  Assistance  to  all  kind  of  CBG/biogas  plants  under  Umbrella  Scheme  of  National  Bio

Energy  Programme  of  Ministry  of  New  and  Renewable  Energy    (MNRE),  additional  Central Assistance on Municipal Solid Waste(MSW) based CBG plants to States and Union Territories for solid waste management by Ministry of Housing and Urban Affairs under the Scheme of Swachh Bharat Mission Urban 2.0,Market Development Assistance @ Rs. 1500/MT on Fermented Organic Manure  produced  from  CBG  projects  under  Policy  on  Promotion  of  Organic  Fertilizer  of Department  of Fertilizers; incentive on biomass  aggregation  machinery  by  Department  of Agriculture  and  Farmers  Welfare  under  Sub  Mission  on  Agricultural  Mechanization  and  Crop Residue Management scheme, policy guidelines for co-mingling of CBG with Natural Gas in City Gas  Distribution  (CGD)  network  for  synchronization  of  CBG  in  CGD  network,  excise  duty exemption  on  amount  of  GST-paid  on  compressed  bio  gas  contained  in  the  blended  CNG; introduction of  phase  wise  mandatory  blending of  CBG in CNG (Transport)  &  PNG  (Domestic) segments  of  CGD  sector  from  FY  2025-26  and  approval  of  scheme  for  providing  financial assistance  to  CBG  producers  for  procurement  of  biomass  aggregation  machinery  to  support collection of biomass etc.

(e)to (g) No sir. Biodiesel production and procurement was affected by Covid 19 Pandemic during FY 2020-21 and FY 2021-22. Oil Marketing Companies (OMCs) have procured around 6 crore litres biodiesel in FY 2022-23. During FY 2023-24 OMCs have procured 25.34 crore litres biodiesel up to 30.11.2023.

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