Indian Biogas Association Welcomes Government's CBG Price Hike, Seeks Further Revisions

(MENAFN- KNN India) New Delhi, May 19 (KNN) The Indian Biogas Association (IBA) has lauded the government's recent decision to increase the procurement price of compressed biogas (CBG), viewing it as a positive step toward bolstering the bioenergy sector.

Effective June 1, the Ministry of Petroleum and Natural Gas will raise the CBG procurement price from Rs 1,380 to Rs 1,478 per Metric Million British Thermal Unit (MMBTU). This revised rate will remain in effect until October 31, 2025.

Gaurav Kedia, Chairman of IBA, stated, "This change in price is a step in the right direction for CBG developers as it corresponds with their reality. However, a higher revision was anticipated, considering the economics of the production, which can also shoulder CBG's long-held aspirations of contributing to the sustenance of India's energy independence by fastening progress on existing and new developers in the industry."

The IBA emphasised that while the price hike is a welcome move, it falls short of industry expectations. The association advocates for further upward revisions to better reflect production costs and to incentivise the adoption of cleaner fuels.

In its statement, the IBA highlighted that a higher procurement price could significantly improve returns on investment for entrepreneurs and Micro, Small, and Medium Enterprises (MSMEs).

Such a move would also facilitate the scaling up of decentralised CBG production across rural India, attract institutional finance and foreign direct investment, and accelerate progress toward national targets on clean mobility, waste management, and energy self-reliance.

The association also suggested implementing a green certification framework with a cap-and-trade system for companies with higher carbon footprints.

This policy adjustment aligns with the government's broader objectives of promoting cleaner fuel adoption, stimulating economic development in rural areas, and advancing a circular, carbon-neutral economy.

(KNN Bureau)

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