5,000 bio-gas plants at Rs 1.75 lakh crore investment

08 October 2018

Oil Minister Mr. Dharmendra Pradhan said that as many as 5,000 plants for extracting biogas from agricultural residue, cattle dung and municipal solid waste are envisaged to be set up in the country in next five years at a massive Rs 1.75 lakh crore investment.

Bio-gas plants
Source: Google

Mr. Pradhan announced that state-owned fuel marketing companies will purchase all the bio-gas from these plants at Rs. 46 per kg in a bid to cut reliance on imports for meeting oil needs.

India is more than 81% dependent on imports for meeting its oil needs and the move to use biogas extracted from waste/bio-mass sources like agriculture residue, cattle dung, sugarcane press mud, municipal solid waste and sewage treatment plant waste is aimed at cutting that.

"We are inviting Expression of Interest (EoI) from producers to offer compressed bio-gas (CBG) that oil companies can use as a fuel for transportation," he said.

CBG so offered will replace compressed natural gas (CNG) currently used in buses, cars and autos. Of the 146 million standard cubic meters per day of natural gas consumed in the country, 56% is imported.

Mr. Pradhan said there is a potential to produce 62 million tonnes of CBG from wastes and its usage would lift the share of natural gas in the energy basket from current 6-7%.

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