In a major step towards enhancing use and adoption of bio-CNG, the National Biofuels Coordination Committee (NBCC), chaired by Shri Hardeep Singh Puri, Minister of Petroleum & Natural Gas and Housing & Urban Affairs, announced the introduction of phase wise mandatory blending of biomethane in CNG (Transport) and PNG (Domestic) segments.
According to the minister, the CBG Blending Obligation (CBO) will promote production and consumption of bio-CNG in the country.
The key objectives of the CBO include: stimulating demand for bio-CNG in CGD (city gas distribution) sector, importing substitution for LNG, saving in Forex, promoting circular economy and assisting in achieving the target of net zero emission.
Highlighting the key outcomes of the CBO, Shri Puri said that it will encourage investments and facilitate the establishment of 750 biomethane projects by 2028-29.
It was, inter-alia, decided that:
- CBO will be voluntary till FY 2024-2025 and mandatory blending obligation would 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 Minister, PNG.
Source: Government of India
