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SATAT Initiative (Compressed Biogas) — Govt Scheme for UPSC | Vaidra
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SATAT Initiative (Compressed Biogas)

Ministry of Petroleum and Natural GasactiveEnergyLaunched: 2018-10-01

About the Scheme

SATAT promotes Compressed Biogas (CBG) production from organic waste — cattle dung, crop residue, MSW, sewage — as vehicle fuel. Launched Oct 1, 2018. Target: 5,000 CBG plants; 100+ operational (2025). Guaranteed offtake at ₹54/kg by OMCs. Reduces stubble burning; creates circular economy. CBG equivalent to CNG quality.

Target Beneficiaries: Farmers selling crop residue; CBG entrepreneurs; CNG vehicle owners; waste generators

Official Website →

✦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.

UPSC Relevance

GS Paper: GS3

Prelims Relevance7%
Mains Relevance7%

Syllabus Tags

Clean EnergyCircular EconomyBiogasAgricultureGS3

Historical Context

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