CBG operators meet Jal Shakti Minister discuss excessive use of chemical fertilisers

New Delhi, Jul 18 (PTI) Compressed Biogas (CBG) operators discussed the excessive use of chemical fertilisers and the lack of a well-defined mechanism for carbon credit trading in the sector during a meeting with Jal Shakti Minister CR Paatil on Thursday.
     They emphasised the need to promote bio-fertilisers to restore soil health and requested more farmer educational programs, according to a statement by the Jal Shakti ministry.
     Operators urged the government to establish mechanisms for carbon credit trading, which could significantly boost the sector's economic viability and support India's net-zero vision.
     Union Minister for Jal Shakti Paatil led a dialogue with CBG producers and key stakeholders to review the GOBARdhan Initiative's progress.
     The meeting underscored the government's dedication to transforming organic waste into valuable resources such as CBG and organic manure, crucial for achieving India's long-term environmental goals, the statement said.
     The event saw participation from multiple stakeholders, including representatives from various ministries, departments and leading organisations in the sector.
     This interaction was aimed to strengthen collaboration and address challenges faced by CBG producers, reflecting the government's unwavering support for sustainable waste management solutions, it said.
     "By converting organic waste into valuable resources, we are not only protecting our environment but also generating employment and promoting health and wellbeing. Our government is dedicated to supporting and advancing this crucial sector to achieve India's long-term environmental goals," Paatil said at the meeting.
     The CBG industry noted the announcement in the Union Budget 2023-24 to establish 500 new waste-to-wealth plants as a major boost for GOBARdhan.
     Currently, 113 CBG plants are functional, with 667 plants in various stages of development and 171 under construction. In 2020, only 19 plants were functional, it said.
     Among various policy enablers of the government, the Market Development Assistance promotes organic fertilisers by providing financial support of Rs. 1,500 per metric ton for the sale of Fermented Organic Manure (FOM) and Liquid Fermented Organic Manure (LFOM) produced from GOBARdhan plants.
     Financial assistance schemes support the development of pipeline infrastructure for injecting CBG into city gas distribution networks and facilitate the procurement of biomass aggregation machinery, with up to 50 per cent financial assistance on procurement costs.
     The SATAT scheme assures the offtake of CBG by Oil marketing companies at an assured price of Rs 54 per kg plus GST.
     Excise duty exemption for CBG blended in Compressed Natural Gas (CNG) prevents double taxation, while the CBG blending obligation in CNG and PNG (Piped Natural Gas) transport and domestic sectors is set to meet annual targets of 1 per cent, 3 per cent, and 4 per cent of total consumption for FY 2025-26, 2026-27, and 2027-28 respectively.
     The Ministry of New and Renewable Energy's Waste to Energy programme provides central financial assistance for BioCNG projects up to a maximum of Rs 10 crore per project, the statement said.
     The Department of Agriculture and Farmers Welfare has ensured the standardisation and inclusion of bio-slurry in the Fertilizer Control Order, with the Agri-Infra Fund providing 3 per cent interest subvention on loans up to Rs 2 crore for setting up CBG plants.
     Paatil assured the CBG stakeholders of continued government support, stating that the sector would soon become a sunrise industry for the economy.

(This story has not been edited by THE WEEK and is auto-generated from PTI)