Page 46 - Banking Finance December 2022

ARTICLE

The minimum designed capacity of a single CBG Plant to A Step Towards a Sustainable Future:
participate in SATAT programme is 2.0 Tonnes Per Day (TPD)
Developmental effort to benefit vehicle-users as well as
of CBG. The application shall be submitted through e-
farmers and entrepreneurs.
tendering portal and hence, the applicant shall have a valid
Digital Certificate for entering details in the e- tendering Efficient tackling of urban air pollution due to farm
portal. stubble-burning and carbon emissions.
Reduce dependency on crude oil imports and realise
Letter of Intent: PM's vision of enhancing farmers' income, rural
EOI Submission is followed by evaluation of EOI on a employment and entrepreneurship
predefined set of parameters, upon qualification of which Efficient treatment and disposal of municipal solid waste
applicants are issued Letter of Intent by respective Oil &
Promotion of organic farming by using Fermented
Gas Company.
Organic Manure (FOM) produced from CBG plants
Retail Outlet selection and readiness:
Conclusion:
After acceptance of LOI, the applicant shall submit a bank
The scheme enables better use of agricultural residue, cattle
guarantee, to safeguard investment of OMCs towards
dung and municipal solid waste. Considering the amount of
retailing of CBG.
biomass generated in the country, CBG has the potential to
For Parties having existing Plant producing Biogas / CBG
replace Compressed Natural Gas (CNG) in automotive,
(as on date of application), who have applied for the
industrial and commercial uses in the coming years.
LOI, a bank guarantee amount of Rs. 1 lakh per CBG
Plant, to be obtained within one month after issuance
SATAT initiative offers an efficient solution for treatment
of LOI
and disposal of municipal solid waste management and help
For new Parties, who are to set up Plants, a bank
in tackling problem urban air pollution due to farm stubble-
guarantee amount of Rs. 5 lakhs per CBG Plant, to be
burning. It will boost entrepreneurship, rural economy and
obtained within one month after issuance of LOI
employment and provide additional source of revenue to
Upon successful submission of Bank Guarantee, farmers.
depending upon the CBG Plant location, the respective
state office is intimated about the LOI Holder, and with Contributing to the cause of environmental protection and
mutual consent between the LOI Holder and the national energy security through substitution of fossil fuels,
concerned Office, Retail Outlets are finalised. The while simultaneously creating new employment opportunities
number of ROs allocated depends upon the proposed through CBG. CBG will facilitate India's pursuit of energy
CBG Production capacity and the location of ROs security and is also a definitive step towards Atmanirbhar
allocated depends upon the location of proposed CBG Bharat (self-sufficient India) through sustainable energy.
plant. Undoubtedly, the Government's timely and pivotal initiative
on CBG has given the much needed push towards clean and
Signing of Commercial Agreement: green energy shift and with invigorated efforts, CBG can
Upon successful allocation of RO, a commercial agreement definitely become the protagonist in India's step towards
is executed between Oil & Gas Company and LOI Holder. sustainable future and clean energy journey.
The Commercial Agreement includes plant location, initial
production capacity, RO allocated as well as details of the References:
pricing model to be followed. i. https://satat.co.in/
ii. White_Paper_EOI_1.pdf (iocl.com)
Sale of CBG through RO: iii. https://agricoop.nic.in/

The RO infrastructure development is planned according to iv. https://www.rbi.org.in/
the estimated date of commissioning of CBG Plant. Once the v. Funding_sources_forbiogas_CBGplants.pdf (sbm.gov.in)
CBG Plant is commissioned, CBG is supplied by the LOI vi. https://energy.economictimes.indiatimes.com/news/oil-
Holder to the Allocated ROs via cascades and sale of CBG is and-gas/opinion-indias-clean-and-green-shift-with-
commenced. compressed-biogas/85594999

46 | 2023 | JANUARY | BANKING FINANCE