MNRE says CBG project developers can avail custom duty concession until March 31, 2024

• The concession is extended to projects that use non-conventional materials like, agricultural, forestry, agro-industrial, industrial, municipal and urban waste, bio-waste and or poultry litter

• According to the ministry, CBG project developers seeking custom duty concession need to route their application through the SNA to Director (Waste to Energy Division) of MNRE

New Delhi: The Ministry of New and Renewable Energy (MNRE) said on Monday that developers of compressed bio-gas (CBG) projects will be able to avail concession in custom duty for the goods that are required for the initial setting up of the project until March 31, 2024. The concession is extended to projects that use non-conventional materials like, agricultural, forestry, agro-industrial, industrial, municipal and urban waste, bio-waste and or poultry litter. "Custom Duty concession will be considered for all applications received in this Ministry through SNA (State Nodal Agency) on or before 31.03.2024 or till notification of withdrawal of this Custom Duty concession is issued by Government of India, which ever is earlier," said the MNRE in the notification.

The process for seeking custom duty concession

According to the ministry, CBG project developers seeking custom duty concession need to route their application through the SNA to Director (Waste to Energy Division) of MNRE. The ministry will then issue the certificate recommending the grant of Customs Duty Concessions after scrutiny, examination and acceptance of the aforesaid application. "The aforesaid Certificates shall be issued by an authorised officer of this Ministry not below the rank of Deputy Secretary to the Government of India," said the notification.

ALSO READ: As India charts its energy transition, it must place focus on self-reliance: Petroleum Secretary

The backdrop

Under the SATAT initiative, which was launched on October 1, 2018, the government envisages setting up 5,000 CBG plants by 2023-24 with production target of 15 MMT, facilitating the creation of new employment opportunities and enhancing farmers' income. India will see an investment of Rs 2 lakh crore in setting up 5,000 compressed bio-gas (CBG) plants by 2023-24, Petroleum Minister Dharmendra Pradhan had said in November 2020.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)