Budget 2024: Green fuel gets boost, FM presents scheme for biomanufacturing

Cabinet approves marketing margins for domestic gas provided for fertiliser production

Finance Minister Nirmala Sitha­raman announced a slew of initiatives aimed at bolstering the green energy sectors while presenting the Interim Budget on Thursday. She outlined a comprehensive road map for sustained economic growth. The finance minister announced a new scheme for converting biomass into Compressed Bio Gas (CBG) and phased mandatory blending of CBG with natural gas to be used as fuel for vehicles and domestic supplies. 

“Phased mandatory blending of CBG in Compressed Natural Gas (CNG) for transport and Piped Natural Gas (PNG) for domestic purposes will be mandated,” she said.

Sitharaman also announced that a new scheme of bio-manufacturing and bio-foundry will be launched. This is expected to produce green products such as biodegradable polymers, bio-pharmaceuticals and bio-agri inputs. 

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“This scheme will also help in transforming today’s consumption-oriented paradigm to one based on regeneration,” she said.

The government has increasingly focused on the production of compressed biogas in India. It is currently aiming to set up 5,000 CBG plants by FY25. This is being done through the Sustainable Alternative Towards Affordable Transport (SATAT) scheme, which has established more than 46 CBG plants.

Renewable on roofs & oceans 

About 10 million Indian households will get rooftop solar unit under a new scheme, she said, adding that they will enjoy free electricity from it. 

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“Through rooftop solarisation, one crore households will be enabled to obtain up to 300 units of free electricity every month. Saving up to Rs 15,000-18,000 annually for households and selling the surplus to the distribution companies,” Sitharaman said.

Prime Minister Narendra Modi on January 22 announced the Pradhanmantri Suryodaya Yojana scheme to install solar panels on the rooftops of 10 million households. The finance minister also announced a viability gap funding for harnessing India’s vast offshore wind energy potential for an initial capacity of 1 gigawatt. To bring down natural gas imports, she announced coal gasification and liquefaction capacity of 100 metric tonnes (MT) to be set up by 2030.