To significantly reduce LNG imports, the Indian Biogas Association advocates a substantial investment of Rs 30,000 crore in machinery for biomass supply to compressed biogas (CBG) plants. The aim is to cut LNG imports by 12 million metric tonnes annually.

Chairman Gaurav Kedia highlights the dual benefits of using agricultural residues, like paddy straw, for bioenergy production and soil enrichment. Economic challenges lead farmers to burn straw instead of selling them promptly.

Kedia proposes government intervention, including subsidies for combined harvesters and support for balers and storage units. Operational guidelines for crop residue management, custom hiring centers, and awareness campaigns are recommended.

An ASCI study underscores India's vast biomass potential, generating 754 million tonnes of biomass from a crop production area of 198 million hectares. The suggested investment aims to address challenges in states with significant biomass generation, potentially attracting Rs 170,000 crore for CBG plants.

This initiative aligns with the government's green energy goals, contributing to a 12 MMTA reduction in LNG imports. While acknowledging progress in the Union Budget 2024, Kedia underscores the need for long-term financing, incentives for domestic production, and tradable CBG certificates.