For Prelims: Compressed Biogas (CBG), SATAT Scheme, PNGRB, MMSCM, Nodal Regulator, Current CBG blending target (FY 2026-27), CBG blending target for 2027-28, CBG blending target for 2028-29
For Mains: CBG blending mandate, pipeline connectivity, capacity utilisation, SATAT scheme, energy transition, waste-to-energy, import substitution
Source:
The Hindu
5 facts for one-day exams
SSC, railway, police and teaching exams ask direct questions like these.
- India achieved 1.7% CBG blending in H1 of FY 2026-27 against a 3% annual target.
- CBG blending targets: 3% by FY 2026-27, 4% in 2027-28, 5% in 2028-29.
- PNGRB (Petroleum and Natural Gas Regulatory Board) is the regulator for CBG blending.
- 210 functional CBG plants exist in India; average capacity utilisation is only 44%.
- 247 of 308 CBG plants under construction have no plans for pipeline connectivity.
Why in the news?
India has a mandated compressed biogas (CBG) blending target of 3% into domestic piped natural gas (D-PNG) and vehicular CNG by the end of FY 2026-27, rising to 5% by 2028-29. Only 1.7% blending was achieved in H1 of this fiscal, requiring a sharp ramp-up in CBG sales. Pipeline connectivity is the key bottleneck, as most CBG plants lack it, limiting capacity utilisation to 44% on average.
Summary
- India's CBG blending mandate: 3% by FY 2026-27, 4% in 2027-28, and 5% in 2028-29.
- CBG blending achieved only 1.7% in H1 (April-September 2026); CBG sales were 115.9 MMSCM against combined CNG + D-PNG sales of 6,800 MMSCM.
- To meet the 3% target, CBG sales must reach 408 MMSCM for the full fiscal, requiring an additional 292.1 MMSCM in H2.
- Of 210 functional CBG plants, average capacity utilisation is only 44%; plants with pipeline connectivity achieve 65-69% utilisation.
- 247 of the 308 CBG plants under construction have no plans for pipeline connectivity, a major infrastructure gap flagged by PNGRB.
Highlights
Blending Target Gap
India achieved only 1.7% CBG blending in H1, needing a sharp increase to reach the mandated 3% by fiscal year-end.
Pipeline Connectivity Bottleneck
Most CBG plants lack pipeline connections, leading to low capacity utilisation (44% average) and uncertain offtake.
Rising Mandate Trajectory
The blending target rises to 4% in 2027-28 and 5% in 2028-29, requiring significant infrastructure and production expansion.
Background
Compressed biogas (CBG) is purified biogas with methane content over 90%, making it interchangeable with natural gas for use as vehicular fuel (CNG) and domestic piped gas (D-PNG). India's SATAT (Sustainable Alternative Towards Affordable Transportation) scheme, launched in 2018, promotes CBG production from biomass and organic waste. The mandatory blending policy aims to reduce natural gas imports, utilise agricultural residue, and cut greenhouse gas emissions.
Key Analysis and Impact
The 1.7% blending achievement in H1 against a 3% target reveals a significant implementation gap. CBG sales of 115.9 MMSCM must more than triple in H2 to 408 MMSCM, requiring production and offtake to accelerate dramatically. The core structural issue is pipeline connectivity: plants with pipeline access operate at 65-69% capacity, while the national average is only 44%. Of 308 plants under construction, 247 have no pipeline connectivity plans, indicating the gap will widen before it narrows. PNGRB's call for larger entities to set captive CBG plants and set their own blending targets suggests the policy may shift from a top-down mandate to a market-driven approach.
Way Forward
Urgent investment in city gas distribution (CGD) pipeline networks is needed to connect existing and upcoming CBG plants. The government may need to incentivise pipeline connectivity through viability gap funding or mandate it for new plants. Larger oil and gas marketing companies (OMCs) like IOCL, BPCL, and HPCL can lead by setting higher internal blending targets and investing in captive CBG capacity. The rising target trajectory (5% by 2028-29) signals long-term policy commitment, but near-term H2 performance will test the feasibility of the mandate.
CBG Blending Targets vs Achievement
| Parameter | H1 (April-Sept 2026) | Full year target (2026-27) |
|---|---|---|
| CBG blending % | 1.7% | 3% |
| CBG sales (MMSCM) | 115.9 | 408 (required) |
| Combined CNG + D-PNG sales (MMSCM) | 6,800 | 13,600 (projected) |
Background GK
Textbook concepts you need to understand this news
- Compressed Biogas (CBG)
- Purified biogas (methane content >90%) compressed to high pressure, used as a renewable alternative to CNG for transport and piped natural gas for domestic and industrial use. Produced from biomass, agricultural residue, and organic waste.
- SATAT Scheme
- Sustainable Alternative Towards Affordable Transportation, launched in 2018 by the Ministry of Petroleum and Natural Gas, to promote CBG production and use as a vehicular fuel.
- PNGRB
- Petroleum and Natural Gas Regulatory Board, a statutory regulatory body under the Ministry of Petroleum and Natural Gas, responsible for regulating the refining, processing, storage, transportation, distribution, marketing, and sale of petroleum products and natural gas.
- MMSCM
- Million Standard Cubic Metres, a unit of measurement for natural gas volume at standard temperature and pressure conditions.
Facts to remember
Tap a card to see the answer. Try to recall it first.
How exams will ask this
- Data: CBG blending achieved 1.7% in H1 (April-September 2026) against a 3% target for FY 2026-27; targets 4% in 2027-28 and 5% in 2028-29.
- Nodal Body: Petroleum and Natural Gas Regulatory Board (PNGRB) under Ministry of Petroleum and Natural Gas.
- Data: 210 functional CBG plants with average capacity utilisation of 44%; 308 plants under construction, 247 with no pipeline connectivity plans.
Don't make this mistake!
Examiners may confuse CBG blending targets with ethanol blending targets (20% by 2025). They may also ask for the regulator (PNGRB) and not the ministry, or swap the years (e.g., 3% target for 2027-28 instead of 2026-27).
Write these in mains answers
- CBG blending mandate, pipeline connectivity, capacity utilisation, SATAT scheme, energy transition, waste-to-energy, import substitution
Stuck? Get it in one tap
Compressed biogas (CBG) is a clean fuel made from farm waste and organic material, similar to the CNG used in cars and homes. India wants to mix 3% CBG into the natural gas supply by the end of this year, but so far has only mixed 1.7%. The main problem is that most CBG plants are not connected to gas pipelines, so they cannot easily sell their gas. A plant with a pipeline runs at 65-69% capacity, while one without runs at only 44%.
- India achieved 1.7% CBG blending in H1 of FY 2026-27 against a 3% annual target.
- CBG blending targets: 3% by FY 2026-27, 4% in 2027-28, 5% in 2028-29.
- PNGRB (Petroleum and Natural Gas Regulatory Board) is the regulator for CBG blending.
- 210 functional CBG plants exist in India; average capacity utilisation is only 44%.
- 247 of 308 CBG plants under construction have no plans for pipeline connectivity.
- Economy: Energy sector and renewable energy policy
- Environment: Waste-to-energy and climate change mitigation
Related concepts: Compressed Biogas (CBG), SATAT Scheme, PNGRB, MMSCM
Practice questions
Pick an answer, then read the explanation.
- Q1Easy
Which regulatory body is responsible for overseeing the compressed biogas (CBG) blending mandate in India?
Explanation: PNGRB, under the Ministry of Petroleum and Natural Gas, regulates the natural gas sector including CBG blending. CERC regulates power, BEE oversees energy efficiency, and MNRE handles renewable energy policy but not the blending mandate directly.
- Q2Hard
Consider the following statements regarding India's compressed biogas (CBG) blending mandate:
- 1.India has a target of blending 3% CBG into domestic piped natural gas (D-PNG) and vehicular CNG by the end of the current fiscal year (2026-27).
- 2.The average capacity utilisation of functional CBG plants in India is over 65%.
- 3.The CBG blending target is set to increase to 5% by the fiscal year 2028-29.
Which of the statements given above is/are correct?
Explanation: Statement 1 is correct: the 3% target is for FY 2026-27. Statement 2 is incorrect: average capacity utilisation is only 44%, not over 65%. Statement 3 is correct: the target rises to 5% in 2028-29. Hence option C is correct.
- Q3Medium
What was the total combined sales of CNG and D-PNG in India during the first half (April-September) of FY 2026-27?
Explanation: CBG sales were 115.9 MMSCM against combined CNG and D-PNG sales of 6,800 MMSCM in H1. 13,600 MMSCM is the projected full-year figure, 115.9 MMSCM is CBG sales, and 408 MMSCM is the CBG sales needed for the full year to meet the 3% target.
- Q4Medium
What is the primary infrastructure gap identified by PNGRB that is hindering the achievement of India's CBG blending targets?
Explanation: PNGRB stressed that pipeline connectivity ensures assured offtake; plants with pipelines achieve 65-69% capacity utilisation versus the national average of 44%. Feedstock availability, SATAT incentives, and demand are not cited as the primary bottleneck in the news.
Frequently asked questions
1. What is the current compressed biogas (CBG) blending target for India in FY 2026-27?
India has a target of blending 3% CBG into domestic piped natural gas (D-PNG) and vehicular CNG by the end of the current fiscal year (2026-27).
2. What percentage of CBG blending was achieved in the first half of FY 2026-27?
India achieved 1.7% CBG blending in the first half (April-September 2026) of the current fiscal year.
3. Which regulatory body released the report on CBG blending data and infrastructure gaps?
The Petroleum and Natural Gas Regulatory Board (PNGRB) released the report highlighting the blending data and the need for pipeline connectivity.
4. How many CBG plants are functional in India and what is their average capacity utilisation?
There are 210 functional CBG plants in India, and their average capacity utilisation is 44%.
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- Original5 November 2026 · Read story
