Lok Sabha Question No. 1610 (UNSTARRED), answered on 2025-02-13
Subject: Set up compressed Bio-Gas Plants under SATAT
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Bhartruhari Mahtab, Shri Dilip Saikia, Shri Damodar Agrawal, Shri Lumbaram Choudhary, Shri P P Chaudhary, Shri Ramesh Awasthi, Smt. Shobhanaben Mahendrasinh Baraiya, Shri Balabhadra Majhi, Smt. Kamlesh Jangde, Dr. Bhola Singh, Shri Manoj Tiwari

## LOK SABHA UNSTARRED QUESTION No. 1610 TO BE ANSWERED ON 13 th  February, 2025

## Set up compressed Bio-Gas Plants under SATAT

## †1610. SHRI BALABHADRA MAJHI:

SHRI DAMODAR AGRAWAL:

SHRI P P CHAUDHARY:

SHRI MANOJ TIWARI:

SHRI DILIP SAIKIA:

DR. BHOLA SINGH:

SMT. KAMLESH JANGDE:

SHRI RAMESH AWASTHI:

SHRI LUMBA RAM:

SMT. SHOBHANABEN MAHENDRASINH BARAIYA:

SHRI BHARTRUHARI MAHTAB:

पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

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

- (a) whether any steps has been taken by the Government to expand pipeline infrastructure in remote and economically weaker areas particularly in Aspirational Districts designated by the NITI Aayog to ensure equitable access to clean energy in view of the expanding gas based economy so far and if so, the details thereof;
- (b) the manner in which small scale entrepreneurs are being encouraged to set up compressed biogas plants under the Sustainable Alternatives for Affordable Transportation (SATAT) scheme;
- (c)  the  incentives  available  for  consumers  and  businesses  to  switch  to  renewable  fuels  such  as biodiesel and ethanol blended petrol; and
- (d) whether any specific measures have been taken for high energy consuming industries to reduce their carbon footprint, and if so, the details thereof?

## ANSWER

पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũालय मŐ राǛमंũी ( ŵी सुरे श गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI SURESH GOPI)

(a) With the aim to create a national gas grid and increase the availability of natural gas across the country, as on 30.09.2024, approximately 24,945 km of natural gas pipeline network is operational and 10,805 km of pipeline is under construction.  Providing Piped Natural Gas (PNG) connections, establishment of  Compressed  Natural  Gas  (CNG)  stations and laying  of  pipeline  infrastructure is part of development of City Gas Distribution (CGD) Networks and the same is carried out by the entities authorized by Petroleum and Natural Gas Regulatory Board (PNGRB) as per their Minimum Work  Programme (MWP).  In order to  increase  usage  of  Natural  Gas,  a  clean  fuel,  PNGRB  has authorized 307 Geographical Areas (GAs) covering almost 100% of total mainland of the country including  Aspirational  Districts  designated  by  the NITI  Aayog.  As  on  31.12.2024,  the  authorized entities  have  provided  1.42  crore  PNG  (D)  connections,  established  7513  CNG  Stations  and  laid

5.65  lakh  inch-km  pipeline  against  the  pro-rata  target  of  2.75  crore  PNG  (D)  connections,  4237 CNG stations and 3.40 lakh inch-km pipeline across the country.

(b) Government has taken various steps to encourage setting up Compressed Bio-Gas (CBG) plants across  the  country.  These  steps  includes  assured  price  for  off-take  of  CBG  through  long  term agreements with Oil and Gas Marketing Companies (OGMCs); the Umbrella Scheme of National Bio Energy Programme by the Ministry of New and Renewable Energy, which inter-alia provided Central  Financial  Assistance  to  all  kind  of  CBG/biogas  plants;  Additional  Central  Assistance  for Municipal Solid Waste-based CBG projects under Swachh Bharat Mission Urban 2.0; the inclusion of  bio-manure  produced  from  CBG  plants  as  Fermented  Organic  Manure  and  Liquid  Fermented Organic Manure under Fertilizer Control Order 1985; Market Development Assistance to promote Organic Fertilizer produced from CBG projects by Department of Fertilizers; the inclusion of CBG projects  under  'White  Category'  by  Central  Pollution  Control  Board  on  case  to  case  basis;  the inclusion of CBG projects under Priority Sector Lending by RBI; loan products from various Banks for financing of CBG projects; etc.

Further, Government has taken measures such as issuance of guidelines related to synchronization of CBG with CNG in CGD Network; introduction of scheme for development of pipeline infrastructure (DPI) for injection of CBG into the City Gas Distribution (CGD) network; introduction of scheme to support  CBG  producers  for  procurement  of  Biomass  Aggregation  Machinery  (BAM);  and  phase wise mandatory obligation for sale of CBG in CNG (T) and PNG (D) segment of CGD network.

(c)  The  Government  has  been  implementing  the  Ethanol  Blended  Petrol  (EBP)  and  Biodiesel Blending  Programmes  nationwide.  The  Government,  since  2014,  has  initiated  several  initiatives, which  inter-alia  include  expanding  ethanol  feedstocks  for  ethanol  production,  establishing  an administered price mechanism for sugarcane-based ethanol under the EBP Programme, reducing the GST rate on ethanol to 5%, introduction of Ethanol Interest Subvention Schemes (EISS) between 2018  and  2022  to  support  ethanol  production  from  molasses  and  grains,  signing  of  Long-Term Offtake Agreements (LTOAs) by Oil Marketing Companies (OMCs) with Dedicated Ethanol Plants (DEPs) to ensure supply stability etc. Further, notification of  Pradhan Mantri JI-VAN (Jaiv Indhan Vatavaran Anukool Fasal Awashesh Nivaran) Yojana, for providing financial assistance to establish advanced biofuel projects. For biodiesel, the Government has set an indicative target for blending with diesel and direct sales under the National Policy on Biofuels, notification of the "Guidelines for Sale of Biodiesel for Blending with High-Speed Diesel for Transportation Purposes - 2019' and reduction of GST on biodiesel procurement from 12% to 5% etc.

Adoption  of  these  blended  fuels  has  led  to  reduced  carbon  emissions  leading  to  a  healthier environment.

(d) The Government of India has taken several steps to facilitate high energy consuming industries reduce  their  carbon  footprints.  The  measures,  inter-alia,  includes  promotion  of  cleaner  fuels including natural gas, CBG, Bio-ethanol blended petrol, bio-diesel blended diesel, SAF (Sustainable Aviation Fuel); implementation of energy efficiency measures in industries through schemes such as the Perform, Achieve & Trade (PAT) scheme under the Bureau of Energy Efficiency (BEE), which encourages energy-intensive industries to enhance their efficiency and trade excess energy savings as marketable certificates; dis-incentivized the use of Naptha/ Fuel Oil/ Low Sulphur Heavy Stock (LSHS) for the production of urea due to which all units have been converted to Natural Gas as feedstock; facilitating green hydrogen adoption as a future clean fuel through policy initiatives under the National Green Hydrogen Mission; procurement of power through renewable energy source and shifting  from  diesel  to  electric  traction  in  the  Indian  Railways  etc.  Further,  to  promote  usage  of renewable power in the Country, the Government has undertaken various measures viz. permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route, waiver of Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned  by  30th  June  2025,  declaration  of  trajectory  for  Renewable  Purchase  Obligation (RPO) up to the year 2029-30, setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers for installation of RE projects at large scale etc.

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