Now PLI Scheme on card for Compressed Biofuel producers

New Delhi: To achieve its target of becoming energy independent by 2047, the Government is coming up with a Rs 6000-7000 crore PLI scheme (Production Linked Incentive scheme) for bio-fuels. Sources have informed ET Now that Compressed biogas producers will get incentives based on their production. The Oil ministry has initiated consultation with the industry and approx Rs 6000-7000 cr may be announced for the scheme, claimed person cited above. Under the PLI scheme Rs 5-6/ltr incentives may be provided to the producers and these amounts will be up and above the procurement being done by oil marketing companies at Rs 54/ltr.

Drafting of the scheme has already been started and it will be sent to the finance ministry for its approval by June end. After all the necessary approval, the PLI scheme may be announced by October 2022, said a person privy to the matter. Companies like IOC, HPCL and BPCL will continue to make mandatory procurement under Sustainable Alternative towards affordable transportation (SATAT) scheme.

CBG demand increased manyfold due to the rapid expansion of the City Gas Distribution network. The Government has also taken a decision to change the natural gas supply mechanism to City gas distribution companies. Under the new changes all CGD companies will get gas at a uniform base price. GAIL has been appointed as a nodal agency to supply gas to companies after pooling from different sources like APM gas, RLNG, CBG and from difficult fields. The role of CBG will be very significant under this scheme as it may support companies to increase their volume.