Govt Makes CBG Blending Mandatory In CNG, PNG; Eyes Rs 37,500 Crore Investment For 750 Projects by 2028-29

India has made Compressed Bio-Gas (CBG) blending mandatory in the CNG (Transport) & PNG (Domestic) segments of the CGD Sector. The key objectives of the CBO are to stimulate demand for CBG in the CGD sector, import substitution for Liquefied Natural Gas (LNG), save in Forex, promote circular economy and assist in achieving the target of net zero emission etc.

Hardeep Singh Puri, Minister of Petroleum & Natural Gas and Housing & Urban Affairs said that it will encourage investment of around Rs 37,500 crores and facilitate the establishment of 750 CBG projects by 2028-29.

Key factors in the mandatory CBG blending are:

- CBO will be voluntary till FY 2024-2025 and mandatory blending obligation will start from FY 2025-26.

- CBO shall be kept as 1%, 3% and 4% of total CNG/PNG consumption for FY 2025-26, 2026- 27 and 2027-28 respectively. From 2028-29 onwards CBO will be 5%.

- A Central Repository Body (CRB) shall monitor and implement the blending mandate based on the operational guidelines approved by the Minister, PNG.

Apart from this, the government discussed on Saturday measures for promoting the production of ethanol from maize with all stakeholders especially with the Department of Agriculture and Department of Food and Public Distribution (DFPD) to make it a prominent feedstock in coming years.

It was discussed that in the last few years, there has been an increase in Maize cultivation area, yield per hectare and production. Work has been initiated by this ministry in consultation with the Department of Agriculture and DFPD to further develop high starch-yielding varieties, improve the quality of maize DDGS (Dried Distillers Grain Solids) by removing aflatoxins, faster registration of new seed varieties with high starch. To further promote maize training program for distillers with seed companies has also been initiated.

Also, another important announcement was made for promoting biofuels in the country. Sustainable Aviation Fuel (SAF/Bio-ATF) initial indicative blending percentage targets were set by the committee. Based on the comments received from the stakeholders, like MoCA, Niti Aayog, OMCs, etc., the capacities of Sustainable Aviation Fuel plants coming up in the country and projected ATF sales, the following initial indicative blending percentages of SAF in ATF are approved:

- 1% SAF indicative blending target in 2027 ( Initially for International flights)

- 2% SAF blending target in 2028 (Initially for International flights ).