Enablers & Opportunity
GOI and MOPNG have created an enabling ecosystem for accelerated deployment of BioCNG projects in India through various
policy and regulatory provisions, and provisions under SATAT Scheme.
Key Enablers and Provisions for BioCNG Projects in India
Assured Offtake of BioCNG
OGMCs in India have issued number of LoIs to setup BioCNG projects. OGMCs are also executing long term commercial agreements to offtake BioCNG/ at an assured base price of ~USD 0.64 USD (INR 48.3) per kg of BioCNG (all taxes inclusive). operation of booster compressor, dispensing unit, etc. at retail outlet, shall be provided to OMCs or applicant, as per whosoever sets up infrastructure at retail outlet.
Facilita Offtake/Dema te Generation and of Biomanure
To promote the manure produced from BioCNG plants, FOM and digested biogas slurry have been included under FCO 1985. OGMCs are facilitating the marketing of Biomanure produced from the BioCNG plants. OGMCs have entered into an agreement with National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) in this regard.
Large CGD network across India
India has ~19,998 km long natural gas transportation pipeline (also called CGD network) across India. This large CGD network covers over 402 districts across 27 states and union territories in India and has a potential to cover 53% of country’s area and 71% of country’s population21. Figure 15 presents the details of gas infrastructure in India22.
Large Network of CNG Gas Stations (Demand Points)
India has more than 3143 CNG gas stations nationwide. India also has ~8 million PNG connections in domestic, commercial, and industrial categories with 99.4% connections alone in domestic segment. Figure 16 highlights the statewise distribution of CNGgasstations andPNGconnections for select states in India23.
Facilitation/Support from OGMCs
OGMCs are facilitating project developers in design, erecting, construction, commissioning of the BioCNG plants. OGMCs have also entered into MOU with various state governments for facilitating setting up of BioCNG plants. A policy guideline has been issued for synchronization of BioCNG produced by plants under SATATSchemein the CGDnetwork.
Priority Sector Lending
BioCNG projects have been included asa fresh category eligible for finance under priority sector (as per the revised PSL guidelines issued by Reserve Bank of India). This would enable better credit penetration for setting-up of BioCNG projects/plants.
MNRE Incentive Scheme
MNRE, through its waste-to-energy program, is promoting setting up of BioCNG projects using urban, industrial, agricultural waste and MSW. The scheme offers CFAin the form of back-ended subsidy for installation of waste-to-energy projects. Forinstance, CFAof ~ USD0.54 million (i.e. INR4 crore) can be provided to setup a 4.8 TPD BioCNG plant with maximum CFA – ~ USD 1.33 million (Rs 10 crore) per project
Other Fiscal Incentives
GOI has provisioned various fiscal incentive mechanisms to promote the deployment of BioCNG projects in India. These include 100% foreign equity through automatic approval route to attract Foreign Direct Investment (FDI), concessional customs duty, Accelerated Depreciation (AD), and concessional GoodsandServiceTax(GST)of5%,amongothers.
Detailed information of Gas Infrastructure in India
