NEW DELHI: In a bid to promote bio-fuel in the country, the government on Saturday announced the phase-wise mandatory blending of compressed bio-gas (CBG) in compressed natural gas (CNG) and piped natural gas or PNG.
In a meeting held by the National Biofuels Coordination Committee, it was decided that there will be a Central Repository Body (CRB) to monitor and implement the blending mandate. The mandatory blending obligation would start from FY2025-26. Initially, it will be kept 1% for use in automobiles and households, then it will be increased to about 5% by 2028.
“In a major step towards enhancing use and adoption of CBG, the National Biofuels Coordination Committee (NBCC), chaired by the Petroleum Minister, announced on Saturday the introduction of phase-wise mandatory blending of CBG in CNG (transport) & PNG (domestic) segments of city gas distribution (CGD) sector,” said the petroleum ministry in a statement.
According to the government, the objectives of the CBO (CBG blending obligation) are to stimulate demand for CBG in CGD sector, import substitution for liquefied natural gas (LNG), saving in forex, promoting circular economy and to assist in achieving the target of net zero emission etc.
Petroleum minister Hardeep Singh Puri while talking about the initiative said the CBG blending obligation will promote production and consumption of CBG in the country. “It will encourage investment of around Rs 37,500 crore and facilitate establishment of 750 CBG projects by 2028-29,” said Puri.
Discussions also took place for promoting production of ethanol from maize with all stakeholders especially with the Department of Agriculture and Department Food and Public distribution (DFPD) to make it a prominent feedstock in coming years, the minister said. The government approved 1% sustainable aviation fuel (SAF) indicative blending target in ATF by 2027 for domestic flights and 2% SAF blending target in 2028 for international flights.
The government has already achieved 10% ethanol blending five months before its November 2022 target. Now it has advanced its 20% ethanol blending in petrol target to 2025 from 2030. India, world’s largest importers of oil and gas, wants to cut down in its fuel import bill.