Transition to market-driven economy vital for India's 2030 compressed biogas goals: CII
New Delhi, July 2
The Government of India's ambitious vision of establishing 5,000 compressed biogas plants and producing 15 million metric tonnes of CBG annually by 2030 will require a fundamental transition to a market-driven renewable gas economy, according to a study by the Confederation of Indian Industry.
The study, titled 'Mainstreaming Compressed Biogas (CBG)', was released at a conference in New Delhi organised in association with the Petroleum & Natural Gas Regulatory Board. It presents a comprehensive strategic roadmap to position CBG as a mainstream pillar of national energy security, rural development, and decarbonization.
Against the backdrop of rising global energy demand and import dependence, the analysis evaluates sectoral growth under different trajectories up to 2030, concluding that long-term sustainability will depend upon diversified offtake across industrial, transport, and commercial sectors rather than relying solely on mandatory blending.
To accelerate this transition, the industry body recommended a comprehensive reform agenda. This includes rationalizing GST to 5 per cent across the entire CBG value chain and equipment, operationalizing Renewable Gas Certificates (RGCs), and permitting the private trading of Fermented Organic Manure (FOM).
The report also advocates for infrastructure expansion, including dedicated pipeline injection facilities, alongside the strengthening of biomass aggregation systems and the establishment of a National Bioenergy Mission.
Chandrajit Banerjee, Director General, CII, highlighted the domestic potential of the sector. "With significant dependence on imported fossil fuel, compressed biogas (CBG) presents a strategic opportunity to enhance energy security, promote circular economy practices, reduce emissions, improve waste management, and create additional income opportunities for farmers," Banerjee said.
The report builds upon existing policy frameworks to outline a path toward long-term commercial viability and investment attractiveness.
Ranjit Rath, Chairman, CII National Hydrocarbon Committee and Chairman & Managing Director, Oil India Ltd., stated that the report articulates a strategic roadmap for mainstreaming compressed biogas by building upon the policy momentum created through SATAT and the CBG Blending Obligation.
"It advocates a calibrated transition from policy-induced demand to a diversified, market-driven renewable gas ecosystem capable of ensuring long-term commercial viability, investment attractiveness and energy security," Rath said.
By integrating international practices with India's biomass potential, the study envisions a self-sustaining ecosystem that reduces import dependence and supports long-term Net Zero ambitions.
— ANI
Reader Comments
The 5,000 CBG plants target sounds ambitious but we should also think about the ground reality. Many biogas plants set up earlier by local bodies have failed due to lack of maintenance and feedstock supply chain issues. A National Bioenergy Mission would be great if it focuses on training local operators and ensuring continuous biomass supply from farmers. Hope it's not just another committee that meets once a year. 🤞
'Market-driven' sounds fancy but what about the small waste-pickers and informal sector who collect our organic waste? If we create a corporate-driven biogas economy, we need to ensure these people are integrated with fair wages — not pushed out. Otherwise this becomes another 'green' initiative that only benefits big players. The report should have addressed social inclusion more clearly.
This is exactly what India needs — reducing import dependence is non-negotiable if we want energy security. Last year we imported over 85% of our crude oil. CBG from agricultural waste can replace imported CNG and also provide extra income to farmers selling their stubble instead of burning it. Win-win for air pollution in Delhi-NCR too! 💪🇮🇳
I work in renewable energy consulting in the US and this approach makes a lot of sense — India has massive biomass potential that's largely untapped. The blending obligation alone won't sustain it; you need diversified demand from transport and industry. The parallel with what the EU has done with biomethane certification is smart. But Indian policy implementation often lags behind — hope this time is different.
Interesting read. One thing I
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