Biofuel Policy

Govt plans to set up bio-CNG plants and allied infrastructure


Mains Paper 3: Economy | Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

From UPSC perspective, the following things are important:

Prelims level: Bio-CNG

Mains level: India’s rising energy requirements and ways to ensure adequate availability

Promoting the use of clean fuel

  1. To promote the use of clean fuel, the oil ministry plans to set up bio-CNG (compressed natural gas) plants and allied infrastructure
  2. The oil ministry will be working with state-run oil and gas retailers to set up the plants over the next two years


  1. Bio-CNG is a purified form of biogas with over 95% pure methane gas
  2. It is similar to natural gas in its composition (97% methane) and energy potential
  3. While natural gas is a fossil fuel, bio-CNG is a renewable form of energy produced from agricultural and food waste
  4. A typical bio-CNG station comprises a biogas purification unit, a compressor, and a high-pressure storage system
  5. Bio-CNG is being looked at as an environment-friendly alternative to diesel

Plan to make India a gas-based economy

  1. The government’s plan is to make India a gas-based economy
  2. The government aims to increase the contribution of gas in India’s energy mix to 15% from the current 6.5%
  3. India currently imports one-third of its energy requirement
  4. The world’s third-largest crude oil importer is targeting halving its energy import bill by 2030

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