GOVERNMENT OF INDIA

SATAT Scheme: Powering India's CBG Revolution

Sustainable Alternative Towards Affordable Transportation – A landmark initiative by Ministry of Petroleum & Natural Gas to promote Compressed Bio-Gas as a green transport fuel.

5,000
CBG Plants
target by 2025-26
15
MMT Annual CBG
production target
₹46
Base Price/KG
guaranteed by OMCs
133+
Plants Commissioned
926 TPD capacity
SATAT Scheme Poster

Sustainable Alternative Towards Affordable Transportation

Ministry of Petroleum & Natural Gas | Government of India

SATAT 2.0 Green Energy
SATAT 2.0: CBG Blending Obligation from 1% to 5% by 2028
Understanding SATAT

What is the SATAT Scheme?

Scheme Overview

  • Launched: October 1, 2018 by Ministry of Petroleum & Natural Gas
  • Objective: Promote CBG as a green transport fuel and reduce import dependency
  • Model: Entrepreneurs set up CBG plants; OMCs (IOCL, BPCL, HPCL, GAIL) purchase CBG
  • Target: 5,000 CBG plants producing 15 million metric tonnes annually
  • Status: 133 plants commissioned, 83 under construction, 2,227 LOIs issued

Key Features

  • CBG Specifications: Min 90% methane, max 4% CO₂, compressed to 250 Bar
  • Pricing: ₹46/kg base price (fixed for first 3 years from Oct 2018)
  • Plant Capacity: Minimum 2 tonnes per day (TPD) required
  • Offtake: Guaranteed purchase by OMCs under long-term agreements
  • Standard: Must comply with IS 16987:2016 specifications
National Targets

India's CBG Ambition

SATAT scheme aims to transform India's energy landscape with ambitious milestones.

5,000
CBG Plants
Targeted across India by 2025-26
15 MMT
Annual CBG Production
15 million metric tonnes per annum
50,000+
Jobs Created
Direct & indirect employment
30%
Import Reduction
Potential reduction in natural gas imports

CBG Blending Obligation (CBO) Roadmap

FY 2025-26
1% blending in CNG/PNG
FY 2028-29
5% blending target
2030+
10% blending ambition
Financial Support

Government Incentives & Assistance

Biomass Aggregation
₹564.75 crore allocated for machinery (2023-24 to 2026-27)
Plant Setup Support
₹1.8-9.0 crore assistance for 4 TPD plants
Pipeline Infrastructure
₹28.75 crore per project (up to 75 km) + ₹994.50 crore total allocation
GST Benefits
5% GST on CBG and 12% on compressed biogas plants

Financial Assistance Details

  • Capital Subsidy: Up to 20% of project cost for first 100 plants
  • Interest Subvention: 2% interest rebate on loans for CBG projects
  • Viability Gap Funding: Available for CBG projects in aspirational districts
  • Priority Sector Lending: CBG projects classified under priority sector

Environmental Benefits

  • CO₂ Reduction: 50,000 tonnes per year per 100 TPD plant
  • Stubble Burning: Eliminates agricultural residue burning
  • Organic Manure: Bio-slurry byproduct improves soil health
  • Carbon Credits: Eligible for carbon credit trading
SATAT Ecosystem

How the SATAT Model Works

A seamless partnership between CBG entrepreneurs and Oil Marketing Companies.

1. Feedstock Supply
Agricultural residue, Napier grass, cattle dung, municipal waste
2. CBG Production
Entrepreneur sets up CBG plant with min 2 TPD capacity
3. Quality Testing
CBG tested against IS 16987:2016 standards
4. OMC Offtake
IOCL/BPCL/HPCL purchase at guaranteed price
5. Retail Distribution
CBG sold as green transport fuel at OMC retail outlets
LOI Process
  • Submit Expression of Interest
  • Site feasibility assessment
  • Letter of Intent (LOI) issuance
  • Plant commissioning within 24 months
  • Long-term purchase agreement (15 years)
Current Progress (Jan 2026)
🏭 133 CBG plants commissioned
📊 926 TPD total capacity
⛽ 410 retail outlets with CBG
📝 2,227 active LOIs
🚧 83 plants under construction
Stakeholder Benefits

Who Benefits from SATAT?

For Farmers

  • Regular income from agricultural residue, cattle dung, and Napier grass
  • Long-term supply contracts with guaranteed pricing
  • Free organic manure (digestate) reduces fertilizer costs
  • Eliminates stubble burning - earns carbon credits
  • Skill development and training opportunities

For Entrepreneurs

  • Assured offtake at fixed price under 15-year agreements
  • Government subsidies and viability gap funding
  • Priority sector lending and interest subvention
  • Carbon credit revenue stream
  • Brand recognition as green energy pioneer
SATAT is a game-changer for India's energy security and rural economy.
— Ministry of Petroleum & Natural Gas
Impact So Far

SATAT Achievements

₹46/kg
Guaranteed CBG price
410+
Retail outlets with CBG
2,227
Active LOIs issued
83
Plants under construction