India has built one of the most supportive policy environments in the world for Compressed Biogas (CBG). This page summarises the key central government schemes and incentives relevant to CBG projects like the one Suvarna Shakthi Bioenergy is developing, and what they mean for farmers, industry partners and investors. Details below reflect publicly announced policies; applicants should always confirm current guidelines on the official portals linked.
SATAT – Sustainable Alternative Towards Affordable Transportation
Launched in October 2018 by the Ministry of Petroleum & Natural Gas, SATAT is the flagship initiative for CBG in India. It envisages a nationwide network of CBG plants, with an announced target of up to 5,000 plants.
- Oil & Gas Marketing Companies (OMCs) issue Letters of Intent (LOIs) to CBG producers, providing an assured offtake channel for the gas produced.
- CBG supplied under SATAT is marketed as an automotive and industrial fuel, interchangeable with CNG.
- The scheme connects producers, city gas distribution (CGD) networks and end consumers into one ecosystem.
Suvarna Shakthi Bioenergy has secured a Letter of Intent from Think Gas, a city gas distribution company, which is expected to provide the offtake foundation for the proposed plant.
CBG Blending Obligation (CBO)
In November 2023, the Government of India announced a phased CBG blending obligation for city gas distribution: blending of CBG into CNG (transport) and PNG (domestic) segments, beginning voluntarily and becoming mandatory from FY 2025-26, rising progressively to around 5% by FY 2028-29. This creates structural, growing demand for CBG across India.
GOBARdhan – Galvanizing Organic Bio-Agro Resources Dhan
GOBARdhan is the umbrella initiative that promotes converting cattle dung, agricultural residue and organic waste into biogas, CBG and bio-fertilisers. A unified registration portal gives every biogas/CBG project a registration number used to access government support schemes.
- Single-window registration for CBG and biogas plants across ministries.
- Supports the circular economy: waste to energy to organic fertiliser back to farms.
- Union Budget announcements have committed support for setting up a large number of new CBG plants under this umbrella.
Fermented Organic Manure (FOM) Support
To strengthen the economics of CBG plants, the government has notified Market Development Assistance (MDA) for Fermented Organic Manure produced by biogas/CBG plants, supporting its sale to farmers. FOM also fits within the broader push for natural and organic farming, giving CBG plants a second revenue stream alongside gas sales.
MNRE Support – Waste to Energy Programme
The Ministry of New and Renewable Energy operates a Waste-to-Energy Programme that provides central financial assistance (capital subsidy) for eligible BioCNG/CBG projects, subject to plant capacity and prevailing scheme guidelines. Developers apply as per MNRE notifications in force at the time of project sanction.
Carbon Credits and Green Attributes
CBG projects avoid methane emissions from decomposing agricultural residue and displace fossil fuels, making them strong candidates for carbon market participation. India notified its Carbon Credit Trading Scheme (CCTS) in 2023, and voluntary international markets also recognise biogas methodologies. Carbon revenue is a potential upside for CBG projects, though it is assessed project by project.
Financing and Priority Sector Lending
- Renewable energy projects, including biogas/CBG, are eligible under RBI priority sector lending norms within prescribed limits, improving access to bank credit.
- The Indian Renewable Energy Development Agency (IREDA) and scheduled banks finance bioenergy projects.
- State governments may offer additional incentives such as land facilitation, electricity duty exemptions or single-window clearances, varying by state.
Who Benefits?
Farmers
- A paid market for crop residue that would otherwise be burned or wasted.
- Access to fermented organic manure that restores soil health.
- Rural employment across collection, logistics and plant operations.
Industry & CGD Partners
- A domestic, price-stable green fuel that counts toward blending obligations.
- Decarbonisation of transport fleets and industrial heat.
Municipalities
- Scientific processing of organic waste, reducing landfill burden and emissions.
Investors
- Policy-backed demand (SATAT offtake, blending mandates), multiple revenue streams (CBG, FOM, potential carbon credits) and central/state incentives that improve project economics.
Learn More
Read about the proposed Suvarna Shakthi Bioenergy plant, our roadmap to production, or contact us to discuss investment and partnership opportunities in this upcoming project.