Promoting Use of Compressed Bio Gas as Alternative Green Transport Fuel
Government is promoting the use of Compressed Bio Gas (CBG) as an alternative green transport fuel, which is purified and compressed biogas, produced through a process of anaerobic decomposition from various waste/ biomass sources including Municipal solid waste.

In this direction, Oil PSUs have launched 'Sustainable Alternative Towards Affordable Transportation' i.e. 'SATAT' initiative. Under this initiative, Public Sector Oil Marketing Companies (OMCs) and GAIL have invited Expression of interest (EOI) to procure CBG from potential entrepreneurs for establishment of 5000 CBG plants across the country with an estimated production of 15 MMT CBG per annum by 2023. OMCs and GAIL have offered 46/- per kg delivered price for procurement of CBG. To increase indigenous production of ethanol, the Government has taken many steps including re -introduction of administered price mechanism, opening of alternate route for ethanol production, Regular Interaction with States, IDR Act Amendment, Interest Subvention scheme namely - "Scheme for augmenting and enhancing ethanol production capacity", National Policy on Biofuels - 2018, Fixation of differential price of ethanol from C heavy molasses, B heavy molasses /partial sugarcane juice and 100% sugarcane juice.

The Government has notified National Policy on Biofuels-2018 under which Department of Agriculture, Cooperation & Farmers Welfare under Ministry of Agriculture & Farmers Welfare has been entrusted with the task of production of plant materials through Nurseries and plantations for biofuels in coordination with other Ministries. The production of ethanol/alcohol in the country is approximately 310 Cr. Liters per annum. This also varies depending on sugarcane production. Ethanol/Alcohol is mainly used in chemical, potable liquor, pharma sectors and for EBP programme.