Budget: FM announces financial assistance for converting biomass to CBG

New Delhi: While presenting the interim Budget 2024, Finance Minister Nirmala Sitharaman announced financial assistance for converting biomass into Compressed Bio Gas (CBG) and phased mandatory blending of CBG with natural gas which will be used as fuel for vehicles and for domestic supplies. The objective of the scheme will be to support the transition towards energy security. “Phased mandatory blending of CBG in Compressed Natural Gas (CNG) for transport and Piped Natural Gas (PNG) for domestic purposes will be mandated,” Sitharaman said in her interim Budget speech.

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Govt to provide financial assistance for biomass procurement

She further said financial assistance will be provided for the procurement of biomass aggregation machinery to support collection. The Finance Minister told the Lok Sabha that for promoting green growth, a new scheme of bio-manufacturing and bio-foundry will be launched. This will provide environment-friendly alternatives, such as biodegradable polymers, bio-plastics, bio-pharmaceuticals, and bio-agri-inputs, she said.

“This scheme will also help transform today’s consumptive manufacturing paradigm to the one based on regenerative principles,” said Sitharaman.

Budget 2024 announcements will support use of biomass for CBG: IBA

India Biogas Association (IBA) Chairman Gaurav Kedia said, “Finance Minister Nirmala Sitharaman today (Thursday) presented financial assistance for machinery for the procurement of biomass schemes during Union Budget 2024, which will support the use of biomass to covert into CBG as part of the government’s commitment to a greener future.”

The focus on promoting innovative research toward a greener future will help create a cleaner, greener, and more prosperous future to ensure Viksit Bharat by 2047, he said.

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