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Tata Capital > Blog > Loan for Business > SATAT Scheme: Overview And Benefits

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SATAT Scheme: Overview And Benefits

SATAT Scheme: Overview And Benefits


The Government of India (GOI) launched the SATAT Scheme (Sustainable Alternative Towards Affordable Transportation) to define compressed biogas manufacturing capacity and make it accessible for automobile market use by soliciting acceptances from possible investors.

The Ministry of Petroleum and Natural Gas jointly announced the Scheme in October 2018. Many public sector organisations are involved in the oil industry, including Bharat Petroleum Corporation and Hindustan Petroleum Corporation.

The program ensures India's continuing efforts to comply with contracts like the Paris Agreement by lowering carbon emissions. In this article, people will learn more about the SATAT scheme UPSC.

Background of SATAT Scheme

Shri Dharmendra Pradhan, Union Minister of Petroleum and Natural Gas, Skill Development & Entrepreneurship, has launched an innovative initiative with PSU Oil Marketing Companies (OMCs, which are IOC, BPC, and HPC).

The plan, known as the SATAT Scheme subsidy, seeks to provide a Sustainable Alternative To Affordable Transportation (SATAT) as a developmental effort that would benefit not just vehicle users but also farmers and businesspeople.

This initiative, which was started on the penultimate day of the current Swachhta Hi Seva fortnight, is a massive action to achieve “Clean India”. It holds great promise for effective municipal solid waste management and addressing the urban air pollution brought on by burning farm stubble and carbon emissions.

Compressed biogas (CBG) will help the country's prime minister reach his objectives of increasing farmer incomes, fostering rural entrepreneurship, and lowering reliance on imported crude oil.

What Is CBG or Compressed Biogas?

Biogas is created naturally by anaerobic decomposition of waste materials, including municipal solid waste, sewage treatment plant waste, agricultural residue, bovine dung, sugarcane press mud, and other biomass sources. It is compressed after being purified and given the name CBG, which has a high methane component.

Compressed Biogas has the energy potential and composition identical to commercially accessible natural gas. It can be utilised as an alternative, renewable car fuel because it has a similar calorific value to CNG and other characteristics. This biogas can eventually replace CNG in commercial, industrial, and automotive applications due to the quantity of biomass in the nation.

SATAT Implementation

  • The principal means of implementing the plan is through proposals to construct compressed biogas facilities. The CBG created at these facilities will be shipped in cylinders to gas stations around the nation.
  • To increase the Return on Investment (ROI), business owners might market the additional by-products produced by these plants separately, such as carbon dioxide and bio-manure.
  • There are plans to build 5000 CBG plants across the nation. The eventual objective is to make 5000 such facilities by 2025.
  • These units will produce about 15 million tons of compressed biogas annually. Forty-five thousand people are anticipated to be employed due to the establishment of these plants.

Objectives of The SATAT Scheme

The SATAT scheme has four distinct purposes:

  • Reducing reliance on fuel imports.
  • It increases the nation's growth in job rate.
  • They are lowering hazardous pollutants from burning agricultural waste and vehicle emissions.

How does the SATAT Program Operate?

The SATAT scheme details of operation are provided below:

  • Independent business owners will construct Compressed Biogas facilities under SATAT.
  • Firms will be allowed to transport the compressed biogas produced at their facilities to the networks of fuel stations owned by oil marketing corporations using cylinders. This gasoline will be used to replace renewable fuel.
  • There is already a network of 1500 CNG stations that support about 32 lakh gas-powered automobiles.
  • Additionally, business owners will promote and sell additional plant by-products, including carbon dioxide and bio-manure. As a result, they can increase their return on investment.

Benefits of the SATAT Scheme

The SATAT subsidy has many advantages, including:

  • It will increase employment and entrepreneurship.
  • There will be appropriate waste management and a decrease in pollution and carbon emissions.
  • Compressed biogas can be used as a hedge against rising gas and crude oil prices. There will be no need to import gas or oil.
  • This scheme will help India meet its climate change commitments.

Ending Note

Today's trash, seen as waste, can be utilised in the form of energy. Any amount of biomass can be converted into biogas or bio manure, which will help India to achieve energy independence and combat global warming. The Indian government is dedicated to making India a Sujala-Suphala Bharat, or Sasya-Shyamala Bharat.

Compressed biogas (CBG) and bio-manure are being produced from the waste of biomass as a part of the SATAT initiative - Sustainable Alternative Towards Affordable Transportation, in addition to natural gas. Municipal solid trash, sugar industry waste (press mud), and agricultural leftovers all have a lot of potential for manufacturing the same.

Considering the copious amounts of biomass in India, CBG might help develop alternative clean fuels for future industrial, commercial, and automotive applications. The government has proposed individual entrepreneurs to build CBG plants.

Tata Capital supports the government’s mission and provides a wide range of business loan offerings for start-ups and new entrepreneurs.

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