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Q68 (CISF/2024) Science & Technology › New Materials, Energy & Environment-linked Tech

Which of the following is/are the measure/measures undertaken by the Government of India to promote the production of Compressed Bio-Gas (CBG)?
1. Central financial assistance for setting up of plants for generation of Bio-CNG
2. Inclusion of CBG projects under Priority Sector Lending
3. Concession on customs duty for the import of machinery required for setting up of projects
Select the correct answer using the code given below.

Explanation

The Government of India has implemented several measures to promote Compressed Bio-Gas (CBG) production, primarily under the SATAT (Sustainable Alternative Towards Affordable Transportation) initiative:

  • Statement 1 is correct: The Ministry of New and Renewable Energy (MNRE) provides Central Financial Assistance (CFA) for setting up plants for the generation of Bio-CNG/CBG from urban, industrial, and agricultural waste under the National Bioenergy Programme.
  • Statement 2 is correct: The Reserve Bank of India (RBI) included Compressed Bio-Gas (CBG) projects under Priority Sector Lending (PSL) in 2020, which facilitates easier and cheaper credit for developers.
  • Statement 3 is correct: In the Union Budget 2023-24, the government announced a customs duty exemption on the import of capital goods and machinery required for setting up biogas and CBG projects to reduce initial investment costs.

Additionally, the government has introduced a phased CBG Blending Obligation (CBO) for City Gas Distribution (CGD) entities to ensure market demand.

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