Executive Summary:
The Minister of Petroleum and Natural Gas addressed Lok Sabha question No. 3058 on August 7, 2025, regarding initiatives to increase domestic oil and gas output and reduce import reliance, including the establishment of Compressed BioGas (CBG) plants. The government has implemented various policy and technological initiatives for wider area exploration and is encouraging the setup of CBG plants through multiple supporting schemes and policies. These efforts include exploration licensing policies, financial assistance, and regulatory measures to promote CBG production and integration into existing gas networks.
Key Points / Main Content:
Exploration and Production Initiatives:
* Hydrocarbon Exploration Licensing Policy (HELP) was launched in 2016.
* Nine Open Acreages Licensing Policy (OALP) bid rounds have been completed, awarding 172 blocks (380,603.23 sq km).
* OALP Bid Round X, offering 25 blocks (191,986.21 sq km), was launched on April 15, 2025.
* National Oil Companies have expanded exploration within their Petroleum Mining Lease areas.
* National Seismic Programme, 2017, appraises unappraised areas in Sedimentary Basins.
* A policy framework exists for unconventional hydrocarbon exploration under existing contracts and nomination fields since 2018.
* Approximately 1 Million Sq. Km of No-Go area in offshore was released in 2022.
* The government is spending about Rs.7500 Cr. for seismic data acquisition and drilling of stratigraphic wells.
* Additional 2D Seismic data acquisition of 20,000 LKM in onland and 30,000 LKM in offshore beyond EEZ has been approved.
* New technologies like Airborne Gravity Gradiometry, Passive Seismic Tomography, and Low-Frequency Passive Seismic Surveys are implemented.
* 34 Notices of Discovery (NoD) have been submitted by operators in the last three years.
Compressed BioGas (CBG) Plant Initiatives:
* Assured price for CBG offtake through long-term agreements with Oil and Gas Marketing Companies (OGMCs).
* National Bio Energy Programme provides Central Financial Assistance to all CBG/biogas plants.
* Additional Central Assistance for Municipal Solid Waste-based CBG projects under Swachh Bharat Mission Urban 2.0.
* Bio-manure produced from CBG plants is included under Fertilizer Control Order 1985.
* Market Development Assistance to promote Organic Fertilizer produced from CBG projects by the Department of Fertilizers.
* CBG projects are included under the White Category by the Central Pollution Control Board (case-by-case basis).
* CBG projects included under Priority Sector Lending by RBI.
* Loan products are available from various Banks for financing CBG projects.
* Guidelines exist for synchronization of CBG with CNG in CGD Network.
* A scheme for the development of pipeline infrastructure (DPI) for CBG injection into the City Gas Distribution (CGD) network.
* A Business Aggregation Machinery (BAM) Scheme supports CBG producers.
* Phase-wise mandatory blending of CBG in CNG and PNG segments of CGD network.
Impact Analysis
Oil and Gas Companies:
* Impact: Increased opportunities for exploration and production, potential for new discoveries, and participation in CBG projects.
* Action Required: Participate in OALP bid rounds, adopt new exploration technologies, submit Notices of Discovery, and explore opportunities in CBG production.
CBG Plant Developers/Operators:
* Impact: Financial assistance, assured offtake prices, inclusion in priority sector lending, and support for infrastructure development.
* Action Required: Establish CBG plants, leverage available financial assistance and schemes, and comply with regulatory guidelines for CBG integration into CNG and PNG networks.
Oil and Gas Marketing Companies (OGMCs):
* Impact: Required to enter into long-term agreements for CBG offtake, contributing to the adoption of CBG.
* Action Required: Establish long-term agreements for CBG offtake and integrate CBG into existing distribution networks.
Fertilizer Producers:
* Impact: Opportunity to utilize bio-manure from CBG plants as organic fertilizer.
* Action Required: Promote and utilize Fermented Organic Manure and Liquid Fermented Organic Manure produced from CBG plants.
City Gas Distribution (CGD) Network Operators:
* Impact: Need to adapt infrastructure for CBG injection and blending with CNG and PNG.
* Action Required: Implement guidelines for synchronization of CBG with CNG, develop pipeline infrastructure (DPI), and participate in mandatory blending of CBG.
Central Pollution Control Board:
* Impact: Responsible for categorization of CBG projects under environmental regulations.
* Action Required: Assess and categorize CBG projects on a case-by-case basis.
RBI and Banks:
* Impact: Inclusion of CBG projects under Priority Sector Lending, promoting financing of CBG projects.
* Action Required: Offer loan products for financing CBG projects under Priority Sector Lending guidelines.
Ministry of New and Renewable Energy:
* Impact: Overseeing the National Bio Energy Programme and providing Central Financial Assistance.
* Action Required: Continue to provide financial assistance to CBG/biogas plants.
Department of Fertilizers:
* Impact: Providing Market Development Assistance to promote Organic Fertilizer produced from CBG projects.
* Action Required: Continue to offer Market Development Assistance for organic fertilizers produced from CBG projects.
Key Entities Referenced
Compressed BioGas CBG: A type of biofuel produced from animal and agricultural waste, intended to supplement gas supplies.
Hydrocarbon Exploration Licensing Policy HELP: A policy launched in 2016 by the Government to encourage exploration of crude oil and natural gas.
Open Acreages Licensing Policy OALP: A policy under HELP wherein blocks are awarded to successful bidders through International Competitive Bidding.
National Seismic Programme, 2017: An initiative to appraise unappraised areas in sedimentary basins.
Directorate General of Hydrocarbon DGH: The organization to which operators submit Notices of Discovery.
Ministry of Petroleum and Natural Gas: The ministry responsible for initiatives related to CBG and natural gas.
National Bio Energy Programme: An umbrella scheme by the Ministry of New and Renewable Energy that provides Central Financial Assistance to all kind of CBGbiogas plants
Swachh Bharat Mission Urban 2.0: Scheme under which Additional Central Assistance for Municipal Solid Wastebased CBG projects is provided
LOK SABHA
UNSTARRED QUESTION NO. 3058
TO BE ANSWERED ON 07th August, 2025
Setting up of CBG Plants
3058. Shri Ve Vaithilingam:
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ी
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:
(a) whether the Government is cognisant that exploration over a wider area is likely to
yield more discoveries, raise domestic oil and gas output and cut reliance on imports;
(b) if so, the details thereof along with the initiatives proposed to be taken by the
Government in this regard;
(c) whether the Government is planning to supplement supplies by setting up of
Compressed Bio-Gas (CBG) plants that use animal and agri waste to produce gas; and
(d) if so, the details thereof and if not, the reasons therefor?
ANSWER
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ालय म(cid:336) रा(cid:475) मं(cid:361)ी
((cid:373)ी सुरेश गोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI SURESH GOPI)
(a) & (b): The Government has undertaken various policy and technological initiatives for
exploration of wider areas to discover new potential sources of crude oil and natural gas. The
Government had launched Hydrocarbon Exploration Licensing Policy (HELP) in 2016.
Under, HELP, 09 Open Acreages Licensing Policy (OALP) bid rounds have been completed
so far. Under these rounds, a total of 172 blocks measuring 380,603.23 Square Kilometers (sq
km) have been awarded to the successful bidders through International Competitive Bidding.
Further, OALP Bid Round-X, offering 25 blocks covering 1,91,986.21 sq. km, was launched
on 15.04.2025. Further National Oil Companies have also expanded areas of exploration
within their Petroleum Mining Lease areas for blocks under nomination regime. Other major
initiatives of Government of India in this regard, inter-alia, include:
i. Appraisal of Un-appraised areas in Sedimentary Basins under National Seismic
Programme, 2017.
ii. Policy Framework for exploration and exploitation of Unconventional
Hydrocarbons under Existing Production Sharing Contracts (PSCs), Coal Bed
Methane (CBM) Contracts and Nomination Fields, 2018.
iii. Release of about 1 Million Sq. Km. (SKM) ‘No-Go’ area in offshore which
were blocked for exploration for decades, in 2022.
iv. Government is also spending about Rs.7500 Cr. for acquisition of seismic data
in onland and offshore areas and drilling of stratigraphic wells to make quality
data of Indian Sedimentary Basins available to bidders. Government has
approved acquisition of additional 2D Seismic data of 20,000 LKM in onland
and 30,000 LKM in offshore beyond Exclusive Economic Zone (EEZ) of India.v. New technologies like Airborne Gravity Gradiometry and Gravity Magnetic
Survey, Passive Seismic Tomography (PST), Low-Frequency Passive Seismic
(LFPS) Surveys have been implemented to acquire high quality data for
processing and interpretation.
As a result of these concerted efforts of Government of India, 34 Notices of Discovery (NoD)
have been submitted by operators to the Directorate General of Hydrocarbon (DGH) during
the last three years.
(c) & (d): Government has taken various steps to encourage setting up Compressed Bio-Gas
(CBG) plants across the country. These steps includes assured price for off-take of CBG
through long term agreements with Oil and Gas Marketing Companies (OGMCs); the
Umbrella Scheme of National Bio Energy Programme by the Ministry of New and
Renewable Energy, which inter-alia provided Central Financial Assistance to all kind of
CBG/biogas plants; Additional Central Assistance for Municipal Solid Waste-based CBG
projects under Swachh Bharat Mission Urban 2.0; the inclusion of bio-manure produced from
CBG plants as Fermented Organic Manure and Liquid Fermented Organic Manure under
Fertilizer Control Order 1985; Market Development Assistance to promote Organic Fertilizer
produced from CBG projects by Department of Fertilizers; the inclusion of CBG projects
under ‘White Category’ by Central Pollution Control Board on case to case basis; the
inclusion of CBG projects under Priority Sector Lending by RBI; loan products from various
Banks for financing of CBG projects; etc.
Further, the Ministry of Petroleum and Natural Gas has taken initiatives such as guidelines
for synchronization of CBG with CNG in CGD Network; a scheme for the development of
pipeline infrastructure (DPI) for injection of CBG into the City Gas Distribution (CGD)
network; a scheme to support CBG producers for procurement of Business Aggregation
Machinery (BAM) Scheme; and phase wise mandatory blending of CBG in CNG (T) and
PNG (D) segment of CGD network.
*****