Budget 2024: Green fuel gets boost, FM presents scheme for biomanufacturing
New Delhi, Feb 1, 2024
Cabinet approves marketing margins for domestic gas provided for fertiliser production
Finance Minister Nirmala Sitharaman on Thursday 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.
The objective of the scheme will be to support the transition towards energy security. The government has increasingly focused on the production of CBG in India and aims to set up 5,000 compressed biogas plants by FY25.
Presenting the Budget, Finance Minister Sitharaman said this is being done through the Sustainable Alternative Towards Affordable Transport (SATAT) scheme, which has established more than 46 CBG plants.
"Phased mandatory blending of CBG in Compressed Natural Gas (CNG) for transport and Piped Natural Gas (PNG) for domestic purposes will be mandated," Sitharaman said in her interim Budget speech in the Lok Sabha.
Biomanufacturing focus
Sitharaman also announced that a new scheme of biomanufacturing and bio-foundry will be launched. This is expected to produce green products such as bio-degradable polymers, bio-pharmaceuticals, and bio-agri inputs. Biodegradable polymers are a special class of polymers that break down after their intended purpose by bacterial decomposition process to result in natural byproducts such as gases, water, biomass, and inorganic salts.
Biopharmaceuticals, known colloquially as bio-pharma, are the point at which biotechnology and pharmaceutical manufacturing meet. It is the application of living organisms or extractions, by-products, or components of living organisms, to prevent, relieve, or treat diseases. Bio-fertilizers will also be created as a result.
"This scheme will also help in transforming today's consumption-oriented paradigm to one based on regeneration," the finance minister said.
Gas supply for fertiliser
Also on Thursday, the Cabinet gave its approval for the determination of the Marketing Margin on the supply of domestic gas to Fertilizer (Urea) Units for the period from May 1, 2009 to November 17, 2015.
This approval is a structural reform. Marketing Margin is charged by gas marketing companies from consumers over and above the cost of gas for taking on the additional risk and cost associated with marketing of gas. The government had previously determined a marketing margin on the supply of domestic gas to urea and LPG producers in 2015.
The approval will provide additional capital to the various Fertilizer (Urea) Units for the component of marketing margins paid by them on domestic gas procured during the period May 1, 2009 to November 17, 2015, based on rates already being paid from November 18, 2015 onwards.
[The Business Standard]
