Entrepreneurs wary of bio-gas unit installation
MUMBAI : Only a fraction of nearly 900 entrepreneurs who submitted letters of intent to set up compressed biogas (CBG) plants to oil marketing companies (OMCs), including Indian Oil Corp. Ltd, Bharat Petroleum Corp. Ltd and Hindustan Petroleum Corp. Ltd, have come forward to implement their plans.
The lack of an established ecosystem in terms of pricing and gas offtake is holding entrepreneurs back from installing the plants, officials at the OMCs said.
CBG is produced by anaerobic decomposition of agricultural waste, sugarcane press mud and municipal waste. It can be used as a fuel for automobiles. “OMCs are not guaranteeing 100% offtake from day one, saying that after the plants are constructed, the companies may take 18 months to offtake full capacity.
