Potential for 5000 bio CNG manufacturing units in India

22 February 2021

Union Minister Nitin Gadkari recently said there is a potential for setting up at least 5,000 bio CNG manufacturing units in India. Launching India's first-ever diesel tractor, converted to CNG and registered in his name, Road Transport, Highways, and MSMEs Minister Nitin Gadkari also said that not only it will change the rural economy but result in huge employment creation. 

"The government is trying to set up multiple bio CNG manufacturing units in India. The petroleum ministry is making plans to buy bio-CNG.

"There is huge employment opportunity in this area and it can bolster our economic development. The technology is proven. There is a potential of 5,000 bio CNG manufacturing units in India," the minister said.

He also said that instead of burning stubble, farmers in India can earn Rs. 1,500 crore per annum by selling these.

Their income can multiply manifold if they utilise the stubble in CNG-making, he said while addressing the launch event of India's first CNG tractor converted from diesel.

"As high as 35 million tonne of stubble is burnt by the farmers in India from October to January every year. If this 35 MT stubble is purchased, farmers will get Rs. 2,000 per tonne income. Instead of burning stubbles, farmers of India can earn Rs. 1,500 crore from that," Gadkari said.

He added that the benefits will multiply if used in CNG making. Farmers will get benefits as their per-day cost for diesel tractor comes to Rs. 1,800, while CNG cost comes to barely Rs. 940.

"On average, a farmer can save Rs. 1.5-Rs. 2 lakh on CNG year," he said.

The conversion has been carried out jointly by Rawmatt Techno Solutions & Tomasetto Achille India.

The minister said the wide use of tractors by farmers will help them increase their incomes by lowering costs and help in creating job opportunities in rural India.