Sustainable Alternative Towards Affordable Transportation

Sustainable Alternative Towards Affordable Transportation

The ‘Sustainable Alternative Towards Affordable Transportation (SATAT)’ programme is an initiative by the Government of India (GoI) to increase the production of Compressed Biogas (CBG). It was introduced in October 2018 by the Ministry of Petroleum & Natural Gas. The programme aims to phase out petroleum-based fuels and instead introduce methane-based fuels gradually. The programme also provides a means for the productive utilisation of the bio-waste generated in the agricultural and dairy sectors.

In India, more than ninety per cent of the automobile and industrial sector use petrol, diesel, Liquefied Petroleum Gas (LPG), and other petroleum-based fuels. Usage of petroleum-based fuels causes pollution and degrades the environment. By encouraging the production and consumption of CBG, the GoI envisions that in future methane-based fuels will become the standard in the Indian automobile and industrial sectors.

The SATAT programme invites entrepreneurs to set up CBG plants. The CBG produced by the plants will be purchased by any of the fourteen Compressed Gas Distribution Companies (CGDC) in India.

Eligibility

  • The age of the person applying for the programme should be at least 21 years. The applicant should be an Indian Citizen. Companies can also apply for this programme. However, only Indian companies are allowed. The company should have been in business continuously at least for one year.
  • The applicants will be examined based on the following criteria:
    • Number of years of experience the applicant is having in the business of manufacturing CBG
    • Value of total funds invested in the project
    • Average turnover corresponding to the preceding three financial years
    • Technical competencies & tie-ups

As per the above evaluation, if the applicant is getting less than 35 marks, the candidature will be rejected. Higher priority will be given for applicants who score better marks.

Conditions

  • The plant in which the Compressed Biogas (CBG) is manufactured should be constructed from domestically procured materials.
  • The CBG should be produced from bio-waste by the process of anaerobic decomposition.
  • The bio-waste required to manufacture CBG should be procured from domestic sources. The bio-waste can include agricultural residue, cattle dung, sugarcane press residue, municipal solid waste and sewage treatment plant waste.
  • The CBG should be purified to remove hydrogen sulphide, carbon dioxide and water vapour.
  • The CBG should have a methane content of more than ninety per cent.
  • The CBG should be free from particulate matter residues, spent chemicals, tar bottoms, hazardous waste, and any other extraneous materials or foreign matter. The solid particles in the CBG should be at a minimum level. There may be a need to use strainers to filter solid particles from the CBG. In such a case, the applicant should make suitable arrangements to procure, install and use the strainers.
  • The CBG should have a calorific value which is at least ninety per cent of the calorific value applicable to Compressed Natural Gas (CNG).
  • The applicant should make the necessary arrangements for storage of raw-material, operation and maintenance of the plant and machinery, maintaining final product output quantity and quality, and managing the by-products and wastes from the plant.
  • The pollution generated by the plant should be within the norms specified by the State Pollution Control Board (SPCB).
  • The CBG should meet the following standards relating to chemical composition:
S.No. Characteristic Requirement
1Methane percentage (CH4)A minimum of 90%
2Carbon Dioxide percentage (CO2)A maximum of 4%
3Percentage of [Carbon Dioxide (CO2)+ Nitrogen (N2)+ Oxygen (O2)]A maximum of 10%
4Oxygen (O2) percentageA maximum of 0.5%
5Total sulphur content (including H2S)A maximum of 20 mg/m3
6Moisture contentA maximum of 5 mg/m3
  • The CBG should be free from liquid content throughout the applicable range of pressure and temperature.
  • The CBG should be ‘odourised’. When CBG is odourised, it means that smell is added to the gas. The purpose of adding the smell is to ensure that any leakage is found out immediately. The presence of CBG to the extent of 1.26% in the air should be detected by smell.
  • The CBG should be compressed to the extent of 250 Bar.
  • The capacity of the CBG plant should be 2 tonnes per day or above.

Procedure

  • The applicant should identify the Compressed Gas Distribution Company (CGDC) that is applicable. The applicant should choose the correct CGDC depending on the place of business. Click here to know the CGDC which should be selected.
  • The application form should be filled as per the technical specifications of the plant. The following documents should be attached with the application form:
    • Letter of Expression of Interest (EOI)
    • Affidavit to indemnify the CGDC against losses caused by the applicant
    • Compressed Biogas Quality Specifications List
    • Address proof (Driver’s license or Voter Identification card) (If the applicant is a company, attach address proof of all the directors).
    • Identity proof (Aadhar card or Permanent Account Number) (If the applicant is a company, attach identity proof of all the directors)
    • A Certificate of incorporation and certificate of commencement of business issued by the Registrar of Companies (RoC)
    • Most recent Income Tax Return
    • Latest Financial Statements, as certified by a practising Chartered Accountant
    • Most recent Form AOC-4 filed with the Ministry of Corporate Affairs (MCA).

The above documents should be self-attested by the applicant. The formats for the documents are reproduced below for reference:Application form and attachments for supply of bio-gas

  • The application and attachments should be printed on the company‚Äôs letterhead. After printing, the documents should be signed and stamped as appropriate. Subsequently, the documents should be scanned as a single PDF document. The PDF should be forwarded by e-mail only. Physical submission is not allowed. To know the e-mail address which should be used, click here. The subject mentioned for the e-mail should be ‘Application for Expressing Interest- CBG Plant’.
  • There is no need to pay any fees for the application.
  • If the applicant applies to more than one Compressed Gas Distribution Company (CGDC), all the applications will be rejected.
  • The CGDC will carry out a site visit to verify the CBG plant. The applicant should fully cooperate with the officials undertaking the visit.
  • The supply price for the CBG will be disclosed after the contract is finalised. However, the price will not exceed Rs.50 per kg.
  • The contract once signed, will have a tenure of ten years. Further extension of the contract will be based on mutual agreement.

Post by Athreya

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