- After Ethanol in petrol, now it's CNG's turn!
- What will the government mix with CNG and PNG?
- Know all the information
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The government has launched a Rs 23,731 crore 'Govardhan' scheme for compressed biogas i.e. CBG. The scheme aims to reduce pollution while increasing income from waste and dung. Under this scheme, the government will either buy 100% of the gas produced by biogas plant owners or sell it to a major gas company.
This means that biogas producers will be guaranteed 100% gas from their production, along with a government-fixed price and capital support for at least 10 years. This means that irrespective of market gas prices, the government will fix a tariff for the next 10 years, so that project owners do not have to compromise on profitability.
Blending of biogas to be blended with CNG-PNG
The Government has made Compressed Biogas Obligation CBO a legal requirement to meet the targets under Govardhan Yojana. City gas distribution CGD companies are legally bound to blend it into their CNG and PNG networks. Initially, it was kept voluntary from FY 2024-25 to 2025-26, to give both companies and manufacturers time to prepare.
Now, from FY 2026-27, companies will be mandated to blend 3% of their total gas share with biogas. This means that if a major gas company like GAIL or Adani Gas sells 100 tonnes of CNG annually, it will need to buy 3 tonnes of biogas and blend it in 2026-27. Failure to do so will result in fines being levied by the government. This target will be increased to 4% in FY 2027-28 and from FY 2028-29 onwards, it will be mandatory for all major gas companies to blend 5% biogas with CNG and PNG.
What are the benefits?
- The main benefit of this would be that plant owners would no longer have to rely on marketing or advertising to sell gas. As per the government objective, the companies will come to the plant and buy the gas directly from you.
- This will also significantly reduce pollution. Burning of crop residues which cause pollution in winter will now be used for gas generation. Wet waste from towns and cities will be treated directly at the plant, which will avoid open dumping.
- In rural areas, cattle herders or farmers with agricultural waste like rice straw and sugarcane bran can sell it to biogas plants to earn a fixed monthly income. This will also increase employment opportunities. People will be needed to collect raw materials like dung and straw, transport them to the plant and perform the necessary operations in the plant. This will create employment opportunities in rural areas.
- After the biogas is produced, the project produces a large amount of organic fertilizer, which will be cheaper than chemical fertilizers like urea and DAP. This will fertilize the land, improve the quality of crops and have a positive impact on human health.
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