The Ministry of Petroleum and Natural Gas (MoPNG) has issued guidelines for the development of pipeline infrastructure (DPI) for injection of compressed biogas (CBG) in city gas distribution (CGD) network. The allocated budget for this initiative is Rs 9.945 billion for the fiscal years 2024-25 to 2025-26. The main objective of this programme is to promote the efficient transport of CBG via pipelines from production sites to consumption centers, ensuring full utilisation of CBG. The key objectives include overcoming financial hurdles in pipeline infrastructure development, establishing a reliable supply network in CBG-producing areas, and significantly reducing carbon emissions.
The standard financial assistance structure is as follows: The cost of laying connecting pipelines can vary depending on location, capacity, materials used, and plant size. For calculation purposes, the assumed cost is approximately Rs 10 million per km for steel pipelines and approximately Rs 1.5 million for MDPE pipelines. The financial assistance for laying steel/MDPE pipelines up to 50 km will be provided at 50 per cent of the project cost or Rs 5 million per km, whichever is lower. For projects using only MDPE pipelines, the financial assistance will be capped at 50 per cent of the project cost or Rs 0.75 million per km, whichever is less. Financial assistance for pipelines exceeding 50 km will be provided at 50 per cent of the additional cost for laying pipelines between 50-75 km, or Rs 1.5 million per km, whichever is lower. For projects using only MDPE pipelines, the financial assistance will be limited to 50 per cent of the project cost or Rs 0.75 million per km, whichever is less. Financial assistance will be granted for pipelines up to 75 km (steel/MDPE), with a maximum limit of Rs 287.5 billion per project for pipeline funding. Financial assistance will not be available for pipelines exceeding 75 km in length. However, beneficiaries may choose to lay pipelines beyond 75 km at their own expense.
The guidelines also elaborate about procedure for application for financial assistance, process for approval of application for financial assistance for pipeline connectivity, procedure after approval of application, criteria for selection of beneficiary, responsibility of beneficiary, and scheme monitoring.