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The SATAT Scheme

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Posted on
Aug 09, 2022

Contents Hide

1 Introduction

2 What is Compressed Biogas?

3 Advantages of turning waste into CBG

4 Government Schemes to support SATAT

5 SATAT Scheme Approach

6 Final Thoughts

Introduction

The full form of SATAT is Sustainable Alternative Towards Affordable Transportation. It is a government scheme that aims to establish Compressed Biogas (CBG) production plants and make them accessible for use in the automotive industry by issuing Expression of Interest (EOI) to potential investors.

The Ministry of Petroleum and Natural Gas introduced the scheme in October 2018 in partnership with oil-related public sector institutions. To boost the sector’s development, the government has categorized it as a priority sector, enabling them to access MSME loans.

Goals of SATAT

Intentionally use more than 62 million metric tonnes of trash generated in India each year
Control automobile pollution and emissions and residue from burning agricultural/organic waste
Reduce import dependency on fuels
Increase employment opportunities in India

What is Compressed Biogas?

Biogas is a renewable energy source created through a process known as anaerobic digestion.

In this process, microbes break down organic materials such as food, municipal waste, or animal manure in the complete absence of oxygen.
Biogas can be produced artificially or organically as part of industrial processes for fuel.
It is filtered to eliminate Hydrogen Sulphide, Carbon dioxide, and water vapor before being compressed into biogas (CBG), which has more than 90% of methane (CH4) concentration.
CBG may be a sustainable and renewable alternative to gasoline as it can be used instead of CNG in automobiles, industries, and commercial locations.

Advantages of turning waste into CBG

To ensure that waste management is carried out responsibly, along with significant reductions in carbon emissions and pollution
To generate an additional source of income for farmers
To encourage entrepreneurs in the rural economy, thereby leading to more job opportunities
To provide sufficient support for national pledges to meet climate change targets
To reduce imports of natural gas and crude oil
To safeguard the national economy from price fluctuations of crude oil and natural gas

Government Schemes to support SATAT

Government schemes are facilitating SATAT in the following ways:

The 2018 National Biofuels Policy encourages the use of advanced biofuels like CBG.
The Indian government launched the GOBAR-DHAN (Galvanising Organic Bio-Agro Resources) initiative in early 2021 to recycle manure and solid waste into CBG and compost.
The program intended to fund 700 projects across the country in 2018-19.
The initiative was funded under Solid and Liquid Waste Management (SLWM), part of Swachh Bharat Mission-Gramin (SBM-G), to benefit families in defined areas via Gram Panchayats.
The Ministry of Agriculture has included CBG plant by-products such as “Fermented Organic Manure” in the Fertilizer Control Order to ensure the development of organic farming in India and to increase income from the sale of CBG plant by-products such as “Fermented Organic Manure.” This allows for the commercialization of organic manure across the country.
State government plans have been established to promote CBG activities in addition to the efforts of the Government of India. Several states, such as Haryana, Punjab, and Uttar Pradesh, have constituted State Level Committees to oversee the SATAT Yojana implementation and auditing.
Business Loans for the construction of compressed biogas (CBG) facilities have been introduced as new categories eligible for financing under the priority sector, according to the Reserve Bank of India’s (RBI) amended Priority Sector Lending (PSL) guidelines issued on September 4, 2020. As a result, business loan accessibility for CBG plant development has improved.

SATAT Scheme Approach

The scheme’s principal implementation approach is through proposals to entrepreneurs for setting up Compressed Biogas facilities.

The CBG manufactured at these factories will be delivered to petrol stations around the country in cylinders.
To increase entrepreneurs’ returns on investment, they can independently sell the additional by-products of these plants, such as bio-manure, carbon dioxide, etc.
Compressed Biogas (CBG) will also aid in reducing reliance on crude oil imports and achieving the national goals of increasing farmer income, rural employment, and entrepreneurship.
There are plans to build around 5000 CBG plants across the country in different stages by 2025.
These facilities aim to produce approximately 15 million tonnes of compressed biogas annually.
It is projected that establishing these factories would generate employment for around 45,000 people.

Final Thoughts

The SATAT scheme operates on the belief that all biomass can be converted into biogas and bio manure. It will help India become self-sufficient in fuel/energy generation and contribute to reducing climate change to a great extent.