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					</table><p>Since its launch on June 1, 2023, the unified registration portal for GOBARdhan has witnessed an influx of registrations from functional, under-construction, and yet-to-start Biogas/Compressed Biogas (CBG) plants across India.</p>
<p>The government said that in 60 days since its <a href="https://www.mercomindia.com/waste-to-wealth-initiative-digital-with-launch-of-portal" target="_blank" rel="noopener">introduction</a>, over 1,200 plants, comprising 320 CBG plants and 892 Biogas plants, have been registered on the portal. More than 100 under-construction CBG plants were registered soon after its launch.</p>
<p>The development spans 450 districts, encompassing a broad geographical reach.</p>
<p>Among these, 52 commissioned CBG plants have the capacity to process over 6,600 tons per day (TPD) of organic/agricultural residue, generating more than 300 TPD of CBG and over 2,000 TPD of Fermented Organic Manure (FOM).</p>
<p>These numbers are expected to surge further as the government remains committed to establishing a nurturing ecosystem for CBG/Biogas.</p>
<p>The GOBARdhan initiative, launched by the Union <a href="https://www.india.gov.in/" target="_blank" rel="noopener">Government of India</a>, aims to revolutionize organic waste treatment by converting it into a valuable resource through the compressed biogas (CBG) and biogas sector.</p>
<p>In February, the Budget 2023-24 <a href="https://www.mercomindia.com/union-budget-substantial-capital-expedite-green-energy-transition" target="_blank" rel="noopener">allocated</a> ₹100 billion (~$1.23 billion) for the GOBARdhan program.</p>
<p>Employing a &#8220;whole of government&#8221; approach, the initiative has shown promise in stimulating investments and achieving positive results.</p>
<p>With the help of policy enablers and attractive benefits, the unified registration portal for GOBARdhan has successfully garnered enthusiasm from states/UTs and CBG/Biogas operators/investors.</p>
<p><strong>Policy Enablers for Growth and Success</strong></p>
<p>The success of the GOBARdhan initiative can be attributed to several policy enablers and incentives introduced by the government. These include:</p>
<p><em>Market Development Assistance (MDA) Program:</em> A program offering ₹1,500 (~$ 18.2) per ton of biogas/CBG as MDA has been framed to promote organic fertilizers, a co-product of GOBARdhan plants.</p>
<p><em>Amendment in Fertilizer Control Order: </em>This modification simplifies the marketing process of Fermented Organic Manure (FOM)/Liquid FOM.</p>
<p><em>Exemption of Central Excise Duty:</em> CNG, blended with CBG, is exempted from central excise duty to prevent double taxation.</p>
<p><em>Inclusion in Carbon Credit Trading:</em> CBG has been included in the activities eligible for trading carbon credits under bilateral/cooperative approaches.</p>
<p>Future policies, such as fiscal support for biomass aggregation and pipeline connectivity from CBG facilities to the city gas distribution grid, are expected to increase stakeholder awareness and engagement across the value chain.</p>
<p>The GOBARdhan initiative aligns the interests and efforts of the government, state governments, private players, and other stakeholders. The initiative&#8217;s objective of scientifically managing organic/biodegradable waste while providing resource and monetary benefits to rural households has been a key to its success.</p>
<p>Image Credit: MNRE (CBG Plant in Gujarat)</p>


GOBARdhan Initiative Soars with Over 1,200 Biogas Plants Registered Nationally


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					</table><p>The Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>), in a recent office memorandum, has allotted physical targets to the biogas program implementing agencies (PIAs) for establishing small biogas projects under the Biogas Program Phase II for the fiscal year 2023-24.</p>
<p>The year&#8217;s target is 15,205 biogas plants, with an additional 1,165 sanitary toilets linked to biogas plants.</p>
<p>The Ministry has also set targets for 14 new implementing agencies to conduct four training courses during the fiscal year.</p>
<p>The table below provides the annual targets for installing biogas projects and the training programs as allotted to the implementing agencies:</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-55761 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/06/Biogas-Table-.png" alt="" width="688" height="592" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/06/Biogas-Table-.png 688w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/06/Biogas-Table--300x258.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/06/Biogas-Table--650x559.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/06/Biogas-Table--624x537.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/06/Biogas-Table--600x516.png 600w" sizes="(max-width: 688px) 100vw, 688px" /></p>
<p>The primary objective of the Biogas program is to establish biogas plants that provide clean cooking fuel, lighting, and meet users&#8217; thermal and small power requirements, resulting in reduced greenhouse gas emissions, improved sanitation, empowerment of women, and the creation of rural employment.</p>
<p>Additionally, it is expected to produce organic-enriched bio-manure by utilizing the digested slurry from biogas plants. This bio-manure, a valuable source of nutrients, will help farmers reduce their reliance on chemical fertilizers.</p>
<p>The program is part of the <a href="https://www.mercomindia.com/mnre-approves-%e2%82%b98-5-billion-national-bioenergy-program" target="_blank" rel="noopener">National Bioenergy Program</a>, valid from FY 2021-22 to FY 2025-26.</p>
<p>The program has been recommended for implementation in two phases. A budget outlay of ₹8.58 billion (~$104.66 million) has been approved for Phase-I.</p>
<p>Out of the total budget, ₹6 billion (~$73.18 million) has been approved for the waste-to-energy program, ₹1.58 billion (~$19.27 million) for the biomass program, and 1 billion (~$12.19 million) for the biogas program.</p>
<p>All designated PIAs are urged to promptly take necessary measures to ensure the completion of the assigned objectives with high-quality construction, appropriate commissioning, and effective operation of biogas plants while adhering to all program regulations and standards.</p>
<p><a href="https://www.amuldairy.com/" target="_blank" rel="noopener">Amul Dairy</a>, <a href="https://anand.nic.in/" target="_blank" rel="noopener">Anand</a>, and <a href="https://mrida.nddb.coop/Home/About" target="_blank" rel="noopener">NDDB Mrida</a> are advised to collaborate and coordinate with the assigned biogas state PIA, districts, and development blocks in their respective states/union territories.</p>
<p>The Union government, earlier this month, <a href="https://www.mercomindia.com/waste-to-wealth-initiative-digital-with-launch-of-portal" target="_blank" rel="noopener">launched</a> the unified registration portal for GOBARdhan, intending to streamline the process of setting up compressed biogas CBG/Biogas plants in India. The portal will act as a one-stop repository for assessing investment and participation in the sector nationwide.</p>


MNRE Targets Over 15,000 Plants in Phase II of Biogas Program for FY24


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					</table><p>The Union government has launched the unified registration portal for <a href="https://gobardhan.co.in./" target="_blank" rel="noopener">GOBARdhan</a>, with the aim of streamlining the process of setting up compressed biogas CBG/Biogas plants in India. The portal will act as a one-stop repository for assessing investment and participation in the sector nationwide.</p>
<p>The initiative aims to convert waste into wealth and realize the goals of a circular economy.</p>
<p>The portal will offer feasibility for government bodies, cooperatives, and private enterprises to register and obtain a unique registration number for entities interested in establishing biogas/ (CBG)/bio-CNG projects.</p>
<p>Registration on the portal will provide entities access to various benefits and support from the ministries and departments of the government.</p>
<p>In February, the Budget 2023-24 <a href="https://www.mercomindia.com/union-budget-substantial-capital-expedite-green-energy-transition" target="_blank" rel="noopener">allocated</a> ₹100 billion (~$1.23 billion) for the GOBARdhan program.</p>
<p>The Department of Drinking Water and Sanitation (<a href="https://jalshakti-ddws.gov.in/" target="_blank" rel="noopener">DDWS</a>), Ministry of Jal Shakti, serves as the nodal department for GOBARdhan and has developed a user-friendly portal accessible at: <a href="https://jalshakti-ddws.gov.in/" target="_blank" rel="noopener">https://jalshakti-ddws.gov.in/</a></p>
<p>Union Minister for Jal Shakti Gajendra Singh Shekhawat said the launch of the portal marks a milestone in the government&#8217;s waste-to-wealth generation journey and reinforces its commitment to fostering sustainable economic growth.</p>
<p>The government has urged state governments to prioritize the registration of their CBG/Biogas project operators on the portal to avail themselves of the existing and upcoming support from the Union government.</p>
<p><strong>Benefits and Transparency</strong></p>
<p>The newly launched portal serves as a valuable tool for investors and entrepreneurs in the Biogas/CBG sector. It provides comprehensive information on existing and proposed GOBARdhan projects, enabling stakeholders to make informed decisions.</p>
<p>The GOBARdhan initiative also aligns with India&#8217;s climate action goals, including the target of achieving net-zero emissions by 2070.</p>
<p>Given India&#8217;s significant livestock population, the effective utilization of animal waste through the CBG/Biogas sector can be pivotal in the country&#8217;s energy transition.</p>
<p>GOBARdhan also contributes to achieving several Sustainable Development Goals and supports the circular economy.</p>
<p>Recently, the Goa Budget <a href="https://www.mercomindia.com/goas-budget-green-hydrogen-ammonia-facilities" target="_blank" rel="noopener">proposed</a> an additional incentive of 20% to encourage the establishment of renewable biogas plants.</p>


Waste-to-Wealth Initiative GOBARdhan Goes Digital with Launch of Portal


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					</table><p>The <a href="https://www.finmin.nic.in/">Union Finance Minister</a> Nirmala Sitharaman laid out an expansive budgetary outlay for expediting green transition as she identified ‘Green Growth’ as one of the seven pillars for Budget 2023.</p>
<p>The budget proposed capital investments of ₹350 billion (~$4.28 billion) for green energy transition, net-zero objectives, and energy security. Additionally, it extended the Basic Customs Duty (BCD) exemptions on several items, including lithium-ion batteries for electric vehicles, to help scale up the adoption of green mobility.</p>
<p>Further, the proposal included government support for battery energy storage projects, compressed biogas infrastructure, a green credit program, and a dedicated transmission corridor for evacuating renewable energy.</p>
<p><strong>ISTS Infrastructure</strong></p>
<p>The government announced that an interstate transmission system (ISTS) for the evacuation of power and grid integration of 13 GW of renewable energy from Ladakh would be constructed with an investment of ₹207 billion (~$2.53 billion), including central support of ₹83 billion (~$1.02 billion).</p>
<p><strong>Bioenergy</strong></p>
<p>The budget provided the much-needed impetus to facilitate the adoption of bioenergy in the country. The government allocated ₹100 billion (~$1.23 billion) for the GOBARdhan program, which would support the villages in safely managing their cattle waste, agriculture waste, and organic waste in rural areas.</p>
<p>The program will include 200 compressed biogas projects, including 75 plants in urban areas and 300 community or cluster-based projects.</p>
<p>Further, Compressed Natural Gas (CNG) will be exempt from excise duty to the extent the excise amount is equal to GST paid on biogas/compressed biogas as contained in such blended CNG.</p>
<p><strong>Battery storage</strong></p>
<p>Sitharaman said that for steering the economy on a sustainable development path, battery energy storage systems with a capacity of 4,000 MWh would be supported with viability gap funding (VGF).</p>
<p><strong>Duties and concessions</strong></p>
<p>The proposals said that concession BCD on lithium-ion batteries would be extended for another year.</p>
<p>Further, the concessional BCD has also been retained for another year for the following items:</p>
<ul>
<li>Resin for the manufacture of cast components of wind-operated electricity generators</li>
<li>Toughened glass for solar thermal collectors or heaters</li>
<li>Forged steel rings for the manufacture of special bearings for use in wind-operated electricity generator</li>
<li>Flat copper wire for use in the manufacture of photovoltaic ribbons for solar cells and modules</li>
</ul>
<p>Additionally, the BCD on coal has been increased to 2.5% from 1% earlier but remains exempted from the Agriculture Infrastructure and Development Cess (AIDC).</p>
<p>The other significant duty proposals whereby the government has retained concessional BCD rates are as below:</p>
<p style="text-align: center;"><strong><a href="https://mercomindia.com/wp-content/uploads/2023/02/Budget-5.png"><img loading="lazy" decoding="async" class="alignnone wp-image-48724 size-full" src="https://mercomindia.com/wp-content/uploads/2023/02/Budget-5.png" alt="Budget 5" width="639" height="316" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/02/Budget-5.png 639w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/02/Budget-5-300x148.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/02/Budget-5-624x309.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/02/Budget-5-600x297.png 600w" sizes="(max-width: 639px) 100vw, 639px" /></a></strong></p>
<p><strong>Credit Guarantee for MSMEs</strong></p>
<p>The government proposed revamping the credit guarantee program for micro, small, and medium enterprises (MSMEs). The revamped program will take effect from April 01, 2023, through the infusion of ₹90 billion (~$1.11 billion). This will enable additional collateral-free guaranteed credit of ₹2 trillion (~$24.48 billion).</p>
<p><strong>Green Incentives</strong></p>
<p>The government also proposed a Green Credit Program that would be notified under Environment Protection Act to encourage environmentally sustainable and responsible actions by companies, individuals, and local bodies and help mobilize resources for such activities.</p>
<p>Further, the budget said that replacing old polluting vehicles was essential to greening the economy. It added that adequate funds would be allocated to scrap old vehicles of the central government, state government, and ambulances.</p>
<p>In last year&#8217;s budget, to facilitate domestic manufacturing for the ambitious goal of 280 GW of installed solar capacity by 2030, the government had <a href="https://mercomindia.com/budget-2022-module-manufacturing-%e2%82%b9195-billion-pli-program/">allocated</a> an additional ₹195 billion (~$2.61 billion) for the program.</p>
<p><strong>Green Hydrogen</strong></p>
<p>Highlighting the growth of green hydrogen as an alternative fuel, the government <a href="https://mercomindia.com/cabinet-approves-%e2%82%b9197-billion-hydrogen-mission/">reiterated</a> that an investment of ₹197 billion (~$2.41 billion) would be made for the National Green Hydrogen Mission to accelerate the low-carbon dependency process. The government aims to achieve an annual production of 5 MMT of green hydrogen annually by 2030.</p>


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