Home / Business and Economy / India Boosts Biogas Production to Cut Import Reliance
India Boosts Biogas Production to Cut Import Reliance
1 Oct
Summary
- India aims to increase domestic compressed biogas production tenfold.
- A new framework guarantees offtake at 30% above global prices.
- The government has approved ₹24,000 crore for the new scheme.
India is prioritizing enhanced domestic energy production to counter rising demand and reduce import dependency. Energy demand in the country is growing approximately three times the global average, necessitating a focus on internal supply. Petroleum and Natural Gas Minister Hardeep Singh Puri highlighted that nearly 50% of India's natural gas needs are imported, with a significant LNG import bill.
The government has introduced a new compressed biogas (CBG) framework designed to overhaul domestic production. This initiative aims for a nearly tenfold increase in CBG output, supported by ₹24,000 crore in government outlay. Key features include a guaranteed offtake price 30% higher than global rates, facilitating participation from state governments and industry stakeholders.
This framework streamlines the process by appointing a central coordinating agency and providing a model policy to states. Guaranteed offtake for participants meeting guidelines, along with assistance in identifying feedstock and pipelines, are crucial elements. The initiative aims to transform the CBG sector, with over 217 plants already commissioned and 357 under construction.
