CBG under SATAT

Compressed Biogas scheme

Scheme

Purpose

Scheme to set up CBG manufacturing unit.

Eligibility

Target Audience

Individuals, Proprietary concern, Partnership Firm, Private Limited Company, Public Limited Company, and other constitution of borrower permissible by Ministry of Petroleum and Natural Gas who have been awarded Letter of Intents (LOIs) by Oil Marketing Companies

Other Criteria

Compressed Biogas plants across India with minimum designed capacity of CBG plant is 2.0 Tons per day.

LOI (Letter of Intent) to be obtained from Oil Manufacturing Companies after submission of Expression of Interest to OMCs.

LOI are issued by OMCs based on the evaluation of EOI submitted by the entrepreneurs.

Financials

Quantum

No Minimum & No Maximum

Margin

Up to Rs.2.00 Lakhs - Nil

Above Rs.2.00 lakhs - Minimum 20% on the project cost

Rate of interest

Ranges from 10.15% - 11.30% as per rating

Interest concession

Interest concession will be considered on case-to-case basis on merits which depends upon the discretionary power of sanctioning authority

Processing charges

Working capital - Rs. 200 per lakhs + applicable GST

Term loan - 0.71% + applicable GST

Tenure

Repayment period

Maximum 15 years including moratorium period

Holiday period

Minimum 6 months to Maximum 24 months

Security

Up to Rs.2.00 Lakhs

Hypothecation of assets created

Above Rs.2.00 Lakhs

Hypothecation of assets & Suitable Collateral with 50% coverage for the loan amount.

Relaxation in collateral coverage can be considered on case-to-case based on merits which depends upon the discretionary power of sanctioning authority

Subsidy

As per notification of the Ministry of New and Renewable Energy, Central Finance Assistance (CFA) of Rs 4.00 Crores per 4,800Kg of CBG per day generated from 12,000 cubic meters of Biogas per day with a maximum of Rs 10.00 Crore per project.