CII Study Calls for Market-Driven Transition to Achieve 2030 CBG Targets
The Confederation of Indian Industry (CII) has released a study titled 'Mainstreaming Compressed Biogas (CBG)', stating that India's goal of establishing 5,000 compressed biogas plants and producing 15 million metric tonnes (MMT) of CBG annually by 2030 requires a fundamental shift to a market-driven renewable gas economy. The study was presented at a conference in New Delhi organized in association with the Petroleum & Natural Gas Regulatory Board.
Strategic Roadmap for Energy Security and Decarbonization
The report outlines 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. It concludes that long-term sustainability will depend on diversified offtake across industrial, transport, and commercial sectors, rather than relying solely on mandatory blending.
Key Recommendations for Reform
To accelerate this transition, CII 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.
Industry Leaders Emphasize Domestic Potential
Chandrajit Banerjee, Director General of 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. Ranjit Rath, Chairman of the CII National Hydrocarbon Committee and Chairman & Managing Director of Oil India Ltd., stated that the report articulates a strategic roadmap for mainstreaming CBG 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.
Integration of International Practices with India's Biomass Potential
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. The report builds upon existing policy frameworks to outline a path toward long-term commercial viability and investment attractiveness.
