- ‘Manure gas’ is a hit in the market!
- India will save a whopping Rs 47605 crore;
- See how it will benefit?
Biogas Energy: On the one hand, there is the increasing shock of inflation and the efforts to balance it. In this context, different options have to be found. India has started taking steps towards becoming self-sufficient in the energy sector. This plan is now going to be a game changer for the country’s treasury as well. According to the Indian Biogas Association, the government’s Rs 23,731 crore ‘Govardhan’ scheme can help reduce the country’s natural gas (Biogas Energy) import bill by about $ 5 billion, i.e. Rs 476,050,000,000 in the coming years. What exactly is all the math and how is it?
Foreign exchange savings of Rs. 47,605 crore
India is set to save a whopping Rs 47,605 crore in foreign exchange annually due to the increased use of biogas and compressed biogas. The scheme focuses on converting agricultural residues, cow dung and other organic waste into clean energy, which is a cost-effective raw material.
Govardhan Yojana National Investment
According to IBA, the recently approved Govardhan Yojana should be seen not just as a government expenditure, but as a strategic national investment. It is expected to bring far-reaching benefits in the energy sector, as well as rural development, agricultural productivity, employment and the environment.
LNG import expenditure is around $15.2 billion
The organization said the biggest economic benefit of the scheme could come from reduced natural gas imports. India imports about 50 percent of its natural gas requirements, making the economy vulnerable to fluctuations in international prices and geopolitical situations.
According to the IBA, the cost of LNG imports in the fiscal year 2024-25 was estimated at $15.2 billion. The organization estimates that if about 1,500 compressed biogas projects are fully operational in the coming years, the trade deficit related to natural gas imports could be reduced by about a third. This could save about $5 billion (approximately Rs. 47 lakh crore).
What was the import cost?
The SBA said that the scheme could also help reduce fertilizer imports and the subsidy burden on the government. The cost of fertilizer imports for the fiscal year 2024-25 was estimated at $18 billion. According to the IBA estimates, fertilizer imports can be reduced by at least five percent by running 1,500 CBG projects and adopting good agricultural practices.
The current account deficit will decrease.
The scheme could reduce the current account deficit by an estimated $1 billion. The organisation said the Govardhan scheme will create new employment opportunities, especially in rural areas. This will create employment opportunities for skilled and semi-skilled workers and boost the local economy.