NEW DELHI — In a major push toward renewable energy, the Union Cabinet has sanctioned a ₹23,731-crore national program aimed at scaling up domestic compressed biogas (CBG) output. By converting agricultural leftovers and municipal waste into clean fuel, the initiative aims to curb reliance on imported fossil fuels and accelerate India’s transition to sustainable energy.
Key Highlights of the Scheme
1. Scale & Objectives (FY 2027–2036)
Outlay: ₹23,731 crore over a 10-year period.
Target: Expand domestic compressed biogas production nearly tenfold.
Feedstock Sources: Crop residue, livestock manure, sugar factory press mud, municipal organic refuse, and general biomass.
Application: Blending into compressed natural gas (CNG) for vehicles and piped natural gas (PNG) for residential supply.
Base Program: Builds upon the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, which has already established over 200 operational CBG facilities.
2. Mandatory Blending Targets & Pricing
To ensure steady market demand and protect investment returns:
FY 2027: 3% mandatory CBG blending for City Gas Distribution (CGD) entities.
FY 2028: 4% mandatory blending.
FY 2029 Onward: 5% mandatory blending.
Fixed Rate: An administered purchase price set at ₹2,110 per MMBTU (Million British Thermal Units) to provide revenue predictability for developers while maintaining reasonable costs for consumers.
3. Financial Incentives & Infrastructure Support
Capital Subsidies: New (greenfield) projects will be eligible for up to ₹2 crore per tonne-per-day of production capacity. Existing (brownfield) facilities will also receive expansion support.
Grid Integration: Financial assistance dedicated to establishing pipeline connections between CBG plants and primary distribution networks.
Financing & Innovation: Includes a credit guarantee system for eligible MSMEs alongside a specialized challenge fund for district-level project development, technological innovation, and raw material collection.
Highway Infrastructure: ₹8,970-Crore Guwahati-Tezpur Corridor Approved
Alongside the biogas framework, the Cabinet approved the construction of a 135.87-kilometer, 4-lane access-controlled highway along NH-15 in Assam, running between Guwahati and Tezpur.
Project Cost & Model: ₹8,970.20 crore via the Build-Operate-Transfer (BOT) toll model.
Key Features: Includes 15 major bridges, 30 minor bridges, 19 flyovers, 46 underpasses, 5 major bypasses, and an elephant underpass in the Tezpur section.
Emergency Landing Facility (ELF): Features a 4.9 km airstrip segment along the Tezpur Bypass, planned alongside the Indian Air Force.
Impact: Expected to bypass heavy urban traffic points (including Baihata Chariali, Sipajhar, Kharupetia, Dekiajuli, and Tezpur) and reduce transport bottlenecks on the existing NH-27 south of the Brahmaputra River.
Executive Leadership Perspective
Prime Minister Narendra Modi characterized the dual approvals as crucial steps toward energy self-reliance and regional development, emphasizing their impact on rural enterprise, investment predictability, and cleaner transportation infrastructure.
