SATAT (Sustainable Alternative Towards Affordable Transportation)

SATAT (Sustainable Alternative Towards Affordable Transportation), scheme was launched on 1st October 2018, with the aim of establishing an ecosystem for production of Compressed Bio Gas (CBG) from various waste/ biomass sources and for promoting its use along with Natural Gas. by the Ministry of Petroleum and Natural Gas (MoP&NG). It aims to promote the production and utilization of CBG as an alternative to traditional fossil fuels. CBG is a biofuel produced using feedstock such as paddy straw, municipal solid waste, press mud from the sugar industry and cattle dung or poultry litter. It is chemically similar to natural gas and can be used for automotive and industrial applications.

With a vision to reduce dependence on imported fossil fuels, tackle pollution, and create economic opportunities, SATAT serves as an essential step toward achieving India's broader goal for energy sustainability and environmental protection.

The scheme entails inviting Expression of Interest (EoI) by PSU Oil Marketing Companies (OMCs) from potential entrepreneurs to set up Compressed Bio-Gas (CBG) production plants and make available CBG in the market for use as an automotive and industrial fuel. The EoI is available on the website of IndianOil (iocletenders.nic.in) and other OMCs.

SATAT's objectives extend beyond just offering an alternative to traditional fuels. By promoting CBG, the initiative seeks to reduce India's carbon footprint, promote the effective utilization of organic waste, and create rural employment opportunities. In the context of India's commitment to the Paris Agreement, SATAT also plays an important role in contributing to the country’s carbon reduction goals.

What is Compressed Bio-Gas (CBG)?

Bio-gas is produced naturally (through a process of anaerobic decomposition) from waste / bio-mass sources like agriculture residue, cattle dung, sugarcane press mud, municipal solid waste, sewage treatment plant waste, etc. After purification, it is compressed and called CBG, which has high methane content. Further, Compressed Bio-Gas is exactly similar to the commercially available natural gas in its composition and energy potential. With similar calorific value and other properties similar to CNG, Compressed Bio-Gas can be used as an alternative, renewable automotive fuel. Given the abundance of biomass in the country, Compressed Bio-Gas has the potential to replace CNG in automotive, industrial and commercial uses in the coming years.

Benefits of Compressed Bio-Gas (CBG)

There are multiple benefits from converting agricultural residue, cattle dung and municipal solid waste into CBG on a commercial scale:

Responsible waste management, reduction in carbon emissions and pollution
Additional revenue source for farmers
Boost to entrepreneurship, rural economy and employment
Support to national commitments in achieving climate change goals
Reduction in import of natural gas and crude oil
Buffer against crude oil/gas price fluctuations

Government Support Schemes

The National Policy on Biofuels 2018 emphasized active promotion of advanced bio-fuels, including CBG. The Government of India had launched the GOBAR-DHAN (Galvanising Organic Bio-Agro Resources) scheme to convert cattle dung and solid waste in farms to CBG and compost.

The Ministry of New and Renewable Energy notified Central Financial Assistance (CFA) of Rs. 4 crore per 4,800 kg of CBG per day generated from 12,000 cubic metres of biogas per day, with a maximum of Rs.10 crore per project.
To assist financing to CBG projects, Reserve Bank of India categorized CBG plants in “priority sector” for lending and State Bank of India has already come out with a specific policy to finance CBG projects and other banks are also adopting similar policies for financing.
To ensure promotion of organic farming in India and enhance revenue from sale of bi-products of CBG plants such as “Fermented Organic Manure” and “Liquified Fermented Organic Manure”, Ministry of Agriculture has included them in Fertilizer control Order, thus facilitating marketing of Organic manure throughout India.
The Government of India has also introduced the “Market Development Assistance” (MDA) scheme in the form of Rs 1500 per MT to support marketing of organic fertilizers, viz., Fermented Organic Manures (FOM)/Liquid FOM/Phosphate Rich Organic Manures (PROM) produced as by-product from Bio- gas Plants/Compressed Biogas (CBG) Plants set up under umbrella GOBARdhan initiative. This initiative will promote circular economy, by increasing the viability of the CBG plants.
Ministry of Petroleum & Natural Gas has also issued detailed guidelines for procurement of Biomass Aggregation Machinery (BAM) on 2nd February 2024. The Scheme envisages financial support to the CBG producers fo r procuring Biomass Aggregation Machineries.
For a seamless offtake of CBG produced by the plants, the Ministry of Petroleum & Natural Gas has also introduced the CBG-CGD Synchronisation Scheme (Synchro Scheme) for synchronisation of Biogas/Compressed Biogas (CBG) in CGD networks. GAIL has been mandated to operationalize the CBG-CGD Synchronisation Scheme and supply Biogas/CBG co-mingled with domestic gas at Uniform Base Price (UBP) to all CGD entities for use in CNG (T) and PNG (D) segments.
A scheme for the development of pipeline infrastructure (DPI) for injection of CBG into the City Gas Distribution (CGD) network has been launched to provide financial support for extending pipeline connectivity from CBG plant to the city gas distribution grid.
In order to promote the production and consumption of CBG in the country National Biofuels Coordination Committee (NBCC) has approved, the introduction of phase wise mandatory blending of CBG in CNG (Transport) & PNG (Domestic) segments of CGD sector. Mandatory blending obligation starts from FY 2025-26. CBO will be 1%, 3% and 4% of total CNG/PNG consumption for FY 2025-26, 2026-27 and 2027-28 respectively. From 2028-29 onwards CBO will be 5%. These steps would help in enhancing the availability of CBG in the country for promoting a gas based and circular economy, saving of forex and achieving the target of net zero emission.
In addition to Govt. of India’s efforts, Individual states have also come forward to promote CBG initiatives, in this direction several states such as Haryana, Punjab, Uttar Pradesh and several other States have formed State Level Committee for implementation and monitoring of SATAT Scheme.

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The term User shall refer to the user who is browsing the site. The term IndianOil shall refer to Indian Oil Corporation Limited. The term Site refers to www.iocl.com owned and monitored by IndianOil.
By using the Site, you agree to follow and be bound by the following terms and conditions concerning your use of the Site. IndianOil may revise the Terms of Use at any time without notice to you. Areas of the Site may have different terms of use posted. If there is a conflict between the Terms of Use and terms of use posted for a specific area of the Site, the latter shall have precedence with respect to your use of that area of the Site.
IndianOil may terminate User's access at any time for any reason. The provisions regarding to disclaimer of warranty, accuracy of information, and indemnification shall survive such termination. IndianOil may monitor access to the Site.
All content present on this site is the exclusive property of IndianOil. The software, text, images, graphics, video and audio used on this site belong to IndianOil. No material from this site may be copied, modified, reproduced, republished, uploaded, transmitted, posted or distributed in any form without prior written permission from IndianOil. All rights not expressly granted herein are reserved. Unauthorized use of the materials appearing on this site may violate copyright, trademark and other applicable laws, and could result in criminal or civil penalties. IndianOil is a registered trademark of Indian Oil Corporation Ltd. This trademark may not be used in any manner without prior written consent from IndianOil.
IndianOil does not make any warranties, express or implied, including, without limitation, those of merchantability and fitness for a particular purpose, with respect to any information, data, statements or products made available on the Site.
The Site, and all content, materials, information, software, products and services provided on the Site, are provided on an "as is" and "as available" basis. IndianOil expressly disclaims all warranties of any kind, whether express or implied, including, but not limited to, the implied warranties of merchantability, fitness for a particular purpose and non-infringement.
IndianOil shall have no responsibility for any damage to User's computer system or loss of data that results from the download of any content, materials, information from the Site.
IndianOil may change or discontinue any aspect of its website at any time, including, its content or features. IndianOil reserves the right to change the terms and conditions applicable to use of the Site. Such changes shall be effective immediately upon notice, which shall be placed on the Site.
In no event will IndianOil be liable for damages of any kind, including without limitation, direct, incidental or consequential damages (including, but not limited to, damages for lost profits, business interruption and loss of programs or information) arising out of the use of or inability to use IndianOil's website, or any information provided on the website, or in the Products any claim attributable to errors, omissions or other inaccuracies in the Product or interpretations thereof. Some jurisdictions do not allow the limitation or exclusion of liability. Accordingly, some of the above limitations may not apply to the User.
User agrees to indemnify, defend and hold IndianOil harmless from and against all losses, expenses, damages and costs, including reasonable attorneys' fees, arising out of or relating to any misuse by the User of the content and services provided on the Site.
The information contained in the Site has been obtained from sources believed to be reliable. IndianOil disclaims all warranties as to the accuracy, completeness or adequacy of such information.
IndianOil makes no warranty that: (a) the Site will meet your requirements; (b) the Site will be available on an uninterrupted, timely, secure, or error-free basis; (c) the results that may be obtained from the use of the Site or any services offered through the Site will be accurate or reliable.
The User's right to privacy is of paramount importance to IndianOil. Any information provided by the User will not be shared with any third party. IndianOil reserves the right to use the information to provide the User a more personalized online experience.
The Site provides links to web sites and access to content, products and services from third parties, including users, advertisers, affiliates and sponsors of the Site. You agree that IndianOil is not responsible for the availability of, and content provided on, third party web sites. The User is requested to peruse the policies posted by other web sites regarding privacy and other topics before use. IndianOil is not responsible for third party content accessible through the Site, including opinions, advice, statements and advertisements, and User shall bear all risks associated with the use of such content. IndianOil is not responsible for any loss or damage of any sort User may incur from dealing with any third party.