CBG projects falls under Agriculture infrastructure as per RBI guidelines.Loans to agriculture infrastructure are being classified under priority sector lending which has encouraged banks to sanctions loans for CBG projects. As on 01.11.2023, fifty CBG projects supported with both equity of project proponent and debt support from financial institutions, have been commissioned with total production capacity of about 300 tonne per day.
Major banks like, Canara Bank, State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Union Bank of India, Indian Bank, Punjab & Sind Bank, UCO Bank have developed exclusive loan product/scheme for financing CBG projects.
State Level Committees have been constituted for implementation and monitoring of SATAT initiative in States of Andhra Pradesh, Chhattisgarh, Gujarat, Haryana,Maharashtra, Punjab, Tripura,Uttar Pradesh, and West Bengal.
Government has taken various steps to support SATAT on Pan India basis, including Central Financial Assistance to all kind of CBG/biogas plants under Umbrella Scheme of National Bio Energy Programme of Ministry of New and Renewable Energy (MNRE), additional Central Assistance on Municipal Solid Waste(MSW) based CBG plants to States and Union Territories for solid waste management by Ministry of Housing and Urban Affairs under the Scheme of Swachh Bharat Mission Urban 2.0,Market Development Assistance @ Rs. 1500/MT on Fermented Organic Manure produced from CBG projects under Policy on Promotion of Organic Fertilizer of Department of Fertilizers; incentive on biomass aggregation machinery by Department of Agriculture and Farmers Welfare under Sub Mission on Agricultural Mechanization and Crop Residue Management scheme, policy guidelines for co-mingling of CBG with Natural Gas in City Gas Distribution (CGD) network for synchronization of CBG in CGD network, excise duty exemption on amount of GST-paid on compressed bio gas contained in the blended CNG; introduction of phase wise mandatory blending of CBG in CNG (Transport) & PNG (Domestic) segments of CGD sector from FY 2025-26 and approval of scheme for providing financial assistance to CBG producers for procurement of biomass aggregation machinery to support collection of biomass etc.
This information was given by the The Minister of State in the Ministry of Petroleum and Natural Gas, Shri Rameswar Teli, in a written reply in Lok Sabha today.
(Source: PIB)
