“A phased mandatory blending of CBG in compressed natural gas (CNG) for transportation and pipeline natural gas (PNG) for domestic purposes will be mandatory,” Sitharaman said in her interim budget speech in the Lok Sabha | (PTI photo)
Finance Minister Nirmala Sitharaman on Thursday announced a new plan for converting biomass into compressed biogas (CBG) and mandatory blending of CBG with natural gas in phases for use as fuel for vehicles and domestic utilities.
The aim of the scheme is to support the transition to energy security. The government has increasingly focused on CBG production in India and aims to set up 5,000 compressed biogas plants by FY25.
Presenting the Budget, Finance Minister Sitharaman said this is being done through the Sustainable Alternative Towards Affordable Transport (SATAT) programme, which has established more than 46 CBG factories.
“A phased mandatory blending of CBG in compressed natural gas (CNG) for transportation and pipeline natural gas (PNG) for domestic purposes will be mandatory,” Sitharaman said in her interim Budget speech in the Lok Sabha.
Focus on bioproduction
Sitharaman also announced that a new biomanufacturing and biofoundry program will be launched. This is expected to yield green products such as biodegradable polymers, biopharmaceuticals and bio-agri-inputs. Biodegradable polymers are a special class of polymers that degrade after their intended purpose through a bacterial degradation process, resulting in natural byproducts such as gases, water, biomass and inorganic salts.
Biopharmaceuticals, popularly known as bio-pharma, are the point where biotechnology and pharmaceutical production meet. It is the use of living organisms or extractions, by-products or components of living organisms, to prevent, alleviate or treat diseases. This will also create biofertilizers.
“This plan will also help transform the current consumption-oriented paradigm to one based on regeneration,” the Finance Minister said.
Gas supply for fertilizer
Also on Thursday, the Cabinet approved the determination of the Marketing Margin on the supply of domestic gas to Fertilizer (Urea) Units for the period from May 1, 2009 to November 17, 2015.
This approval is a structural reform. The marketing margin is charged to consumers by gas marketing companies on top of the cost of gas for taking on the additional risks and costs associated with marketing gas. The government had earlier fixed a marketing margin on the supply of domestic gas to urea and LPG producers in 2015.
The approval will provide additional capital to the various fertilizer (urea) units for the share of marketing margins they pay on domestic gas purchased during the period May 1, 2009 to November 17, 2015, based on rates already applicable from November 18 are paid. From 2015.
First print: February 1, 2024 | 2:02 PM IST