As many as 5,000 plants for extracting biogas from agricultural residue, cattle dung and municipal solid waste are planned to be set up across the country in the next five years.
These projects will see an investment of Rs 1.75 trillion. The move will help dependency on imports for meeting oil needs. The state-owned fuel marketing companies will procure the biogas at Rs 46 per kg. The price being offered is more than the domestic natural gas price. Also, 100 percent off-take guarantee is being offered. These projects will create direct employment opportunities for 75,000.
Moreover, expression of interest (EoI) has been invited from producers to offer compressed biogas (CBG) that oil companies can use as a fuel for transportation. The CBG will replace compressed natural gas (CNG) currently used in buses, cars and autos. The EoI will be open till 31 March 2019.
Of the 146 million standard cu mtr per day of natural gas consumed in the nation, 56 percent of it is imported. The country has a potential to manufacture 62 million tonne of CBG from wastes.
Altogether, Rs 700 billion investment planned in rollout of city gas distribution (CGD) network in 86 cities auctioned in the latest round will take the total investment to Rs 2.5 trillion.
Also, the CGD networks in 86 cities will increase the number of CNG stations to 10,000 from the current 1,500 in five years. It will also double the piped natural gas connection to household kitchens to 25 million.