Scheme for Financing Compressed Biogas (CBG)

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Scheme for Financing Compressed Biogas (CBG)

What is the Government of India's Scheme for Financing Compressed Biogas (CBG)? Who can benefit from this scheme, and where can they live to take part in this plan

The Indian government started the Scheme for Financing Compressed Biogas (CBG) programme to encourage the production and use of compressed biogas as a cleaner alternative fuel. The goal of the plan is to help CBG plants get up and running and to set up a market for making and using CBG in the country. Here are the plan's most important parts:


  1. Developers of Projects: The plan is for entrepreneurs, businesses, and groups that want to set up CBG plants. Developers of these projects can get financial help and other benefits to build and run CBG plants.
  2. Farmers and Agri-Entrepreneurs: Farmers and agri-entrepreneurs can benefit by giving the CBG plants the raw materials they need. Feedstock for making CBG can include agricultural garbage, cow dung, and other organic waste from farms.
  3. Area of Creation: The "area of creation" is the place where the CBG plant is built and run. The scheme allows CBG plants to be built anywhere in India, not just in certain areas or states.
Key Features of the Scheme and Help: 
  1. Capital Grant: The scheme gives project owners a capital grant to set up CBG plants. The amount of the grant changes based on the type of fuel and the size of the project. The grant pays for a big chunk of the project costs, making it easier for the CBG plants to stay in business.
  2. Viability Gap Funding (VGF): The scheme gives Viability Gap Funding (VGF) to help CBG plants make more money. VGF helps close the gap between how much it costs to make CBG and how much it sells for in the end. This makes it a good choice for project creators from an economic point of view.
  3. Offtake Guarantee: The plan gives project developers an offtake guarantee so that there will be a market for CBG. The offtake promise makes sure that Oil Marketing Companies (OMCs) will buy a set amount of the CBG made by the plants at a set price.
  4. Market Development Assistance: The plan helps with the marketing and distribution of CBG through market development assistance. This help helps raise knowledge, encourage the use of CBG, and set up a good supply chain for CBG.
  5. Central Financial Assistance (CFA): Under the scheme, project developers get help from the government to pay for different parts of CBG plants, like buying tools, equipment, and infrastructure.
  6. The Ministry of Petroleum and Natural Gas is in charge of carrying out the plan, and the nodal groups that the ministry has chosen are in charge of giving financial help and other incentives. These nodal agencies, such as Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL), can be contacted by project developers who want to learn more about the plan, the application process, and how to get help with it.
Overall, the Scheme for Financing Compressed Biogas (CBG) wants to encourage the production and use of CBG as a clean and sustainable fuel. It helps project developers by giving them money, incentives, and promises that their projects will be used. Its goal is to make India's CBG market strong.