SATAT Initiative (Compressed Biogas)

✦Key Features

• CBG from cattle dung, paddy straw, MSW, press mud, sewage sludge
• Target: 5,000 plants by 2023-24 producing 15 MMT/year; 100+ operational (2025)
• Guaranteed offtake: ₹54/kg by OMCs via Sale Purchase Agreements
• Reduces stubble burning in Punjab/Haryana — paddy straw valued ₹150-200/tonne
• Byproduct: Fermented Organic Manure (FOM) as additional revenue
• CBG = purified biogas >90% methane; same quality as CNG
• Circular economy: waste in → clean fuel + manure out

✓Eligibility Criteria

• Potential entrepreneurs and start-ups interested in green energy sectors.
• Existing business entities and cooperatives with access to biomass sources.
• Technical technology providers for Compressed Bio-Gas (CBG) production.
• Farmers' groups and FPOs looking to manage agricultural waste sustainably.

★Benefits

• Guaranteed buy-back of Compressed Bio-Gas by OMCs at a remunerative price index-linked to market rates.
• Central Financial Assistance (CFA) or capital subsidy provided by the Ministry of New and Renewable Energy (MNRE).
• Access to 'Priority Sector Lending' for obtaining bank loans to set up the CBG infrastructure.
• Provision of bio-manure as a byproduct which can be sold to farmers to enhance soil health.
• Reduction in carbon footprint and contribution to national energy security by replacing imported LNG.

▶Application Process

• Visit the SATAT portal and respond to the 'Expression of Interest' (EoI) issued by Oil Marketing Companies (OMCs).
• Submit a feasibility report and a business plan for the proposed Compressed Bio-Gas (CBG) plant.
• Obtain Letter of Intent (LoI) from the OMCs (IOCL, BPCL, HPCL, GAIL, or IGL).
• Apply for necessary environmental and safety clearances from state and central authorities.
• Sign a commercial agreement with the OMC for the guaranteed buy-back of the produced CBG.

₹ Budget Allocation

1000

Funding Ratio (Centre:State): Market-driven with Central Financial Assistance (CFA) under GOBAR-dhan and interest subvention via various banking channels.

Historical Context

Launched in October 2018 to promote CBG as an alternative green transport fuel and support the vision of a gas-based economy.

Challenges

• High capital expenditure for setting up CBG plants.
• Difficulty in ensuring a consistent supply of feedstock (biomass) year-round.
• Fragmented supply chain for biomass collection and storage.
• Lower calorific value perception compared to conventional fuels.
• Inter-ministerial coordination between Agriculture, Environment, and Petroleum.

Reforms & Recommendations

• Streamlining the certification of Fermented Organic Manure (FOM) to increase its market value.
• Providing 'Priority Sector Lending' status specifically for CBG plants.
• Mandating a certain percentage of CBG blending in CGD networks (similar to Ethanol blending).

Performance Statistics

SDG Linkages

Constitutional Backing

Technology Used

Success Stories

Key Takeaways

• Target of 5,000 CBG plants producing 15 MMT of gas annually.
• Focus on utilizing 600 million tonnes of biomass.
• OMCs provide a guaranteed price of INR 46/kg (plus GST) for CBG.
• By-product (Fermented Organic Manure) provides additional income to farmers.

Convergence Schemes

• GOBAR-dhan Scheme
• National Biofuel Policy 2018
• PM-KUSUM
• Swachh Bharat Mission (Gramin)

Sector Tags