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MoPNG Signed MoUs for 900 CBG plants worth Rs 30,000cr with 8 Oil & Gas Companies & Technology Providers under SATAT Initiative

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Government signs MoUs for 900 compressed biogas plants

On November 20, 2020, Union Minister Dharmendra Debendra Pradhan, Ministry of Petroleum and Natural Gas (MoPNG) signed Memoranda of Understandings (MoUs) with 8 leading oil & gas marketing companies & technology providers to set up 900 Compressed Bio-Gas (CBG) plants with an outlay of Rs 30,000 Cr across India under the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative.

  • The MoUs were inked with 4 Companies viz. JBM Group, Adani Gas, Torrent Gas and Petronet LNG for setting up of Compressed Bio-Gas (CBG) plants, and with 4 technology providers in CBG sectors- IndianOil, Praj Industries, CEID Consultants & Bharat Biogas Energy for facilitating availability of technology for the projects.
  • Notably, in September 2020, Reserve Bank of India (RBI) included CBG in priority sector lending framework as biofuels can reduce India’s fuel import bill by Rs. 1 lakh crore.

What is Sustainable Alternative Towards Affordable Transportation (SATAT) initiative?

Launched in October 2018 by the Government of India (GoI) , it envisages setting up of 5000 CBG plants by FY 2023-24 with production target of 15 MMT with an approximate investment of Rs. 2 lakh crores. Its focus is to boost production and availability of CBG as an alternative and affordable clean fuel for the transportation sector.

  • SATAT Initiative has also set a target to establish 250 CBG plants by 2020 & establish 1,000 CBG plants by 2022 during its launch.
  • It will also contribute towards doubling farmer’s income by 2022, generating employment for the youth and ensuring clean energy for sustainable development
  • The initiative is on the lines of AatmaNirbhar Bharat, Swachh Bharat Mission and boosting MSME sector.

What is Compressed Biogas (CBG)?

CBG is purified and compressed biogas, which is produced through a process of anaerobic decomposition from various forest waste, Agri-waste, animal husbandry waste and marine waste like cattle dung, sugarcane press mud & spent wash of distilleries, sewage water, municipal solid waste (MSW), biodegradable fractions of industrial waste etc.

  • The GoI has set a goal for reduction of import of crude oil dependence by 10% by 2021-22 and reducing the energy emissions intensity by 33%-35% by 2030 as per the Nationally Determined Contribution (NDC) targets agreed in twenty-first session of the Conference of the Parties (COP21) at Paris, France by increasing production of natural gas.

Recent Related News:

i.On 15th September 2020, Gujarat signed a Memorandum of Understanding(MoU) with the Small Industries Development Bank of India (SIDBI) to provide capacity building and market support around 35 lakh Micro Small Medium Enterprises (MSMEs) of Gujarat and to increase their self-reliance.

ii.On 20th August, 2020, A Memorandum of Understanding (MoU) was signed between the Ministry of Shipping (MoS) and Ministry of Skill Development and Entrepreneurship(MSDE) for skilling, re-skilling and upskilling of manpower in Port, Maritime sectors.

About Ministry of Petroleum and Natural Gas (MoPNG):
Dharmendra Pradhan Constituency– Madhya Pradesh (MP)
Secretary– Tarun Kapoor