- The government withdrew subsidy/CFA of all kinds of biogas plants.
- This will jeopardize Indian dream of becoming self-sufficient in fossil fuels,” an IBA (Indian Biogas Association) statement said, as it condemned the government’s decision.
- The industry is seeking government support in this matter.
“Indian Biogas Association condemns the government’s decision on withdrawal of subsidy /CFA of all kinds of biogas plants- all categories- small, medium and bigger.”
“The decision will impact almost 50 million farmers looking for energy security and natural farming along with the government’s target of 5,000 plants under SATAT (Sustainable Alternative Towards Affordable Transportation) Scheme and will jeopardize Indian dream of becoming self-sufficient in fossil fuels,” an IBA (Indian Biogas Association) statement said.
According to the statement, the Indian biogas industry can help the government reduce Rs 1.1 lakh crore imports of fossil fuels if the industry gets the right kind of support.
Farm wastes and energy crops are treated in biogas plants. The end product can be used as a vehicle fuel and for generating heat and electricity. Biogas plants significantly curb the greenhouse effect and help u to cut reliance on fossil fuels such as oil and coal.
The SATAT, an initiative of the Ministry of Petroleum and Natural Gas (MoPNG) under the bio-fuel policy, targets to facilitate setting up 5,000 plants.
This means subsidy requirement is of approximately Rs 20,000 crore (considering each plant of average 5 Tons/day bio-CNG output capacity), over a five-year period, it stated.
The recently lapsed and withdrawn Central Financial Assistance (CFA) scheme for setting-up Biogas/CBG/bio-CNG projects- the scheme used to cover as much as Rs 4 crores/ MWel.eq. (max. up to Rs 10 crore per project), which roughly encompasses 15-25 per cent of the Capital Cost of a typical large-scale bio-CNG project/plant, it stated.
Also, as per the notification dated February 28, 2020, in 2019-20, around Rs 478 crore for 257 MWeq. was allocated under the CFA grants.
Unambiguously, this allocated amount was way too less than the CFA/subsidy needed to achieve the envisaged target under the SATAT initiative. The impact is well seen now in terms of withdrawal of CFA, it stated.
