IOC plans giving a big boost to the compressed biogas business by procuring biogas from across India and selling it at its retail outlets, as part of India’s strategy to reduce dependence on imported fuel and double farm income by 2022. Biogas, produced naturally through anaerobic decomposition from waste or biomass sources like agriculture residue, cattle dung, sugarcane press mud and solid waste, also provides an additional source of income to farmers.
The company has already issued 200 letters of intent (LoIs) out of 250 issued by all PSUs put together for supply of gas in 250 kg cascades at a price of `48/kg for a distance of 50 km. “We are open to sourcing of gas and any interested party can approach us for supply of biogas,” IOC’s CMD Sanjiv Singh said.
“It is a very competitive price and the sellers will not have to bother about supply, marketing and distribution of the gas, which will help them to set up their facilities.
