Overview of India's CBG Blending Policy for 2024-2029

Overview of India's CBG Blending Policy

The Government of India has taken a significant step towards cleaner energy by introducing a policy to blend Compressed Bio-Gas (CBG) with Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in City Gas Distribution (CGD) areas. This initiative was announced by Hardeep Singh Puri, the Union Minister of Petroleum and Natural Gas and Housing and Urban Affairs.

Key Features of the Policy

Here’s a breakdown of the CBG blending policy:

• Voluntary Blending in 2024-25: In the financial year 2024-25, blending CBG with CNG and PNG will be voluntary. Gas distributors will have the option to blend but are not mandated to do so.
• Mandatory Blending from 2025-26: Beginning in the financial year 2025-26, blending will become mandatory. The initial requirement will be a 1% blend of CBG with CNG and PNG.
• Gradual Increase in Blending Percentage: The blending percentage will incrementally rise over the following years. It will be set at 3% in 2026-27, 4% in 2027-28, and will reach 5% by 2028-29.
• Objectives of CBG Blending Obligation (CBO): The CBO policy aims to enhance the production and utilization of CBG in India. Its objectives include boosting CBG demand, reducing foreign exchange expenditures by cutting import reliance, fostering a circular economy, and aiding in achieving net-zero emissions.
• Role of the National Biofuels Coordination Committee: The mandate for blending was established by the National Biofuels Coordination Committee, chaired by Union Minister Hardeep Singh Puri. This announcement was made on November 24, showcasing India's dedication to cleaner energy sources.

Implications of the Blending Policy

This policy reflects India's ongoing commitment to environmental sustainability and energy self-sufficiency. By promoting the use of CBG, the government aims to transition towards cleaner energy solutions, reducing greenhouse gas emissions and supporting local economies.

As this blending initiative unfolds, it is expected to create new opportunities in the biofuels sector and contribute significantly to India’s renewable energy objectives.

Frequently Asked Questions (FAQs)

Q1. What is CBG and why is it important?
Answer: CBG, or Compressed Bio-Gas, is a renewable fuel produced from organic waste. It is important for reducing greenhouse gas emissions and promoting energy self-sufficiency in India.

Q2. When will CBG blending become mandatory?
Answer: CBG blending will become mandatory starting in the financial year 2025-26, beginning with a 1% blend.

Q3. How will the blending percentage increase over time?
Answer: The blending percentage will increase to 3% in 2026-27, 4% in 2027-28, and 5% in 2028-29.

Q4. What are the main objectives of the CBG blending policy?
Answer: The main objectives include increasing CBG demand, saving foreign exchange, promoting a circular economy, and contributing to net-zero emissions goals.

Q5. Who oversees the implementation of the CBG blending policy?
Answer: The National Biofuels Coordination Committee, chaired by Union Minister Hardeep Singh Puri, oversees the implementation of the CBG blending policy.

UPSC Practice MCQs

Question 1: What is the initial mandatory blending percentage of CBG with CNG and PNG set for 2025-26?
A) 1%
B) 2%
C) 3%
D) 4%
Correct Answer: A

Question 2: In which year will the blending percentage reach 5%?
A) 2026-27
B) 2027-28
C) 2028-29
D) 2029-30
Correct Answer: C

Question 3: Who is the chairperson of the National Biofuels Coordination Committee?
A) Narendra Modi
B) Amit Shah
C) Hardeep Singh Puri
D) Nitin Gadkari
Correct Answer: C

Question 4: What is one key objective of the CBG blending policy?
A) Increase foreign oil imports
B) Promote fossil fuels
C) Foster a circular economy
D) Reduce renewable energy usage
Correct Answer: C

Question 5: When was the CBG blending policy announced?
A) November 24
B) December 1
C) January 15
D) February 10
Correct Answer: A