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GOVERNMENT OF INDIA
MINISTRY OF PETROLEUM AND NATURAL GAS
RAJYA SABHA
UNSTARRED QUESTION NO - 3490
ANSWERED ON - 23/03/2026
COMMISSIONING OF CBG PLANTS IN UP UNDER SATAT
3490 SHRI RATANJIT PRATAP NARAIN SINGH:
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:
(a) the number of Compressed Biogas (CBG) plants commissioned and currently under construction
in the State of Uttar Pradesh under the SATAT initiative;
(b) the total production capacity of CBG generated from agricultural residue and municipal solid
waste in the State;
(c) the details of guaranteed offtake agreements signed by Oil Marketing Companies to procure CBG
from the State of Uttar Pradesh entrepreneurs;
(d) the measurable impact of these plants on reducing local stubble burning incidents and generating
rural employment; and
(e) the specific priority sector lending benefits extended by banks to facilitate the setting up of these
plants?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI SURESH GOPI)
(a) to (e): The establishment of Compressed Biogas (CBG) plants is undertaken by entrepreneurs and
other interested entities based on their techno-commercial evaluation of the projects. As reported by
entrepreneurs on the Galvanizing Organic Bio-Agro Resources Dhan (GOBARdhan) portal as of
17.03.2026, 39 CBG plants (including Sustainable Alternative Towards Affordable Transportation
(SATAT) plants) have been commissioned in the State of Uttar Pradesh, while 78 plants (including
SATAT plants) are currently under construction. Out of 39 commissioned, 7 CBG plants primarily use
agricultural residue with an estimated production capacity of approximately 104 TPD (Tonnes Per Day)
and 5 CBG plants primarily use municipal solid waste with an estimated production capacity of
approximately 12 TPD.
Oil and Gas Marketing Companies (OGMCs) have entered into 34 commercial agreements and 103
tripartite agreements for procurement of CBG from entrepreneurs in the State of Uttar Pradesh.
The establishment of CBG plants has facilitated effective utilisation of agricultural residues and organic
waste, thereby contributing to the reduction of stubble burning. These projects also contribute to
generation of local employment opportunities in rural areas across the CBG value chain.
As per the Priority Sector Lending (PSL) guidelines issued by the Reserve Bank of India, loans for
Agriculture Infrastructure up to an aggregate sanctioned limit of Rs. 100 crore per borrower from the
banking system are eligible for classification under PSL. The Agriculture Infrastructure category, inter
alia, includes loans for setting up of CBG plants. Under this provision, banks extend term loans as well
as working capital finance to eligible entrepreneurs for the establishment and operation of CBG
projects.
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