Sustainable Alternative towards Affordable Transportation (SATAT)

SATAT (Sustainable Alternative towards Affordable Transportation) initiative was launched by Government of India in the year 2018. It aims to boost the production and availability of Compressed Bio-Gas (CBG) as an alternative and affordable clean/green fuel for transportation sector. It also expects setting up 5000 CBG plants by FY 2023-24 with a production target of 15 MMT.

Key Points

  • Under SATAT initiative, CBG will be produced from various sources across the country, which will reduce natural gas import, GHG emission and burning of agricultural residues.
  • SATAT initiative is also major step towards achievement of India’s COP-21 commitments for the reduction of carbon emission.
  • In December 2019, the Asian Development Bank also provided financial aid of $ 2 million to SATAT scheme.
  • Use of CBG will decrease the dependency on the import of crude oil.

2 lakh crore to be invested for 5000 CBG plants

Recently, a MoU was signed between the Petroleum and Natural Gas Ministry and leading oil & gas marketing companies and technology providers under the SATAT initiative for stabilizing Compressed Bio-Gas (CBG) plants across India. The MoU was signed for 900 CBG plants; letter of intent for 600 plants has already been given. Thus, now the total CBG plants become 1500.

RBI includes CBG in priority sector lending

In September 2020, the Reserve Bank of India revised its priority sector guidelines which included CBG as a priority sector. Loans for setting up Compressed Bio-Gas (CBG) plants has been now included in the priority sector. The revised guidelines also included loans for installation of solar power plants for solarisation of grid connected agriculture pumps. Priority sector lending areas of RBI include agriculture, small-scale industries, micro-credit, education loan, housing loan, etc.

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