Dharmendra Pradhan said “A new package for MSME shall also assist to fund CBG Plants across India. We are also exploring global funds to fund CBG pr

Financing for Compressed Bio-Gas Plants Will be Priority Sector Lending: Dharmendra Pradhan

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2020-06-24 06:44:08

Dharmendra Pradhan said “A new package for MSME shall also assist to fund CBG Plants across India. We are also exploring global funds to fund CBG projects.”

The Government is in the process of including Compressed Bio-Gas under Priority Sector Lending. Speaking at the online inauguration of the CBG Plant at Namakkal in Tamil Nadu and CBG Fuel Stations at various places in the state, the Petroleum and Natural Gas & Steel Minister Shri Dharmendra Pradhan said that this will provide ease in the financing of CBG Plants. He further added that Central Financial Assistance or Subsidy for setting up CBG plants has been extended to 2020-21 to promote new projects. Shri Pradhan said that CBG projects are viable and have an attractive rate of return for new entrepreneurs. He said “A new package for MSME shall also assist to fund CBG Plants across India. We are also exploring global funds to fund CBG projects.”

The ‘SATAT’ (Sustainable Alternative Towards Affordable Transportation) scheme on CBG was launched on 1.10.2018 which envisages targeting production of 15 MMT of CBG from 5000 plants by 2023. The Government of India has taken various enabling steps to ensure the success of the SATAT scheme. Oil Marketing Companies have offered long term pricing on CBG to make projects bankable and have agreed to execute long term agreements on CBG. The Minister said that Bio-manure, an important by-product of CBG Plants, is also in the process of being included in Fertilizer Control Order 1985. This will make it easier to market and provide an opportunity for organic farming across the country as the 5000 CBG Plants are expected to produce 50 MMT Biomanure.