IFGE Flags Pricing, MDA and GST Concerns, Govt to Hold Quarterly Reviews for CBG Sector
One of the major issues highlighted by the delegation was the delay in disbursement of Market Development Assistance (MDA) for Fermentable Organic Matter (FOM) and Liquid Fermentable Organic Matter (LFOM), reportedly due to a hold by the Ministry of Fertilizers.
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The Indian Federation of Green Energy - CBG Producer Forum (IFGE CBGPF) has termed the recent upward revision in Compressed Biogas (CBG) prices as inadequate and advocated for the introduction of a periodic pricing review mechanism. This key concern was raised during a high-level review meeting chaired by Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, to address critical challenges facing the CBG sector.
One of the major issues highlighted by the delegation was the delay in disbursement of Market Development Assistance (MDA) for Fermentable Organic Matter (FOM) and Liquid Fermentable Organic Matter (LFOM), reportedly due to a hold by the Ministry of Fertilizers. Acknowledging the importance of byproducts as a vital revenue stream, the Minister assured that he would take up the matter with the Ministers of Agriculture & Farmers Welfare and Fertilizers to help resolve the issue.
Addressing taxation concerns, the Ministry committed to forwarding a formal communication to the Ministry of Finance, incorporating IFGE CBGPF’s recommendations for resolving GST-related challenges affecting the sector.
On infrastructure, the Development of Pipeline Infrastructure (DPI) scheme will be reviewed to make it more CBG producer-friendly, aiming to ensure faster and more efficient access to gas networks.
The meeting, held at the Ministry of Petroleum and Natural Gas (MoPNG), was attended by key government officials including Pankaj Jain (Secretary, MoPNG), Praveen Mal Khanooja (Additional Secretary), Asheesh Joshi (Joint Secretary, GP Division), as well as senior representatives from GAIL and IOCL.
From the industry, the meeting saw participation from senior leaders including Ashish Kumar (Vice President, IFGE), Sanjay Ganjoo (Director General, IFGE), and executives from IAVL, IGX, Carbon Masters, TruAlt Bioenergy, Reliance Industries, and other leading firms.
The Minister reiterated the strategic importance of the CBG sector in India’s energy transition and committed to holding quarterly review meetings to track progress and address emerging issues. He reaffirmed the government’s dedication to supporting the sector’s long-term sustainability and growth.
