PNG Ministry serious for Promotion of Green Fuel, says Dharmendra in Lok Sabha

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By Our Correspondent

NEW DELHI/BHUBANESWAR: Union PNG-Steel Minister Dharmendra Pradhan in the Lok Sabha on Monday in a written reply said that Government of India has notified the National Policy on Biofuels 2018 which inter-alia envisages increase usage of biofuels in the energy and transportation sectors of the country.

The policy aims to utilize, develop and promote domestic feedstock and its utilization for production of biofuels thereby increasingly substituting fossil fuels. National Policy on Biofuels 2018 envisages an indicative target of 20% blending of ethanol in petrol and 5% blending of bio-diesel in diesel by 2030. Public Sector Oil Marketing Companies (OMCs) are also promoting cleaner fuels in the country and the steps taken in this regard include:-

 As on 01.02.2020 Public Sector Oil Marketing Companies have installed CNG facilities at 1438 retail outlets in the country. As on 01.02.2020, a total of 1989 CNG Stations have been set up in the country. Setting up Compressed Bio Gas (CBG) facilities under the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative of the Govt. of India.Dispensing BS VI Grade fuel w.e.f. 1.4.2020.Setting up of Electric Vehicle Charging Stations.

Further, Petroleum & Natural Gas Regulatory Board (PNGRB) is the authority to grant authorization to the entities for the development of City Gas Distribution (CGD) network in Geographical Areas (GAs). Providing Piped Natural Gas Connection (PNG) and establishment of Compressed Natural Gas (CNG) Stations are the part of the development of CGD network and the same is carried out by the entities authorized by PNGRB, Pradhan said.

Six (6) GAs for development of CGD networks in Kerala namely Ernakulam District GA, Kozhikode & Wayanad Districts GA, Malappuram District GA, Palakkad & Thrissur Districts GA, and Alapuzha, Kollam & Thiruvananthapuram Districts GA in Kerala and Kannur, Kasargod & Mahe Districts GA in Kerala & Puducherry have been authorised.

He also said that the Ministry of Petroleum and Natural Gas (MoPNG) vide Resolution dated 08.11.19 revised the guidelines for authorization to market transportation fuels which have been published in the Gazette of India. The revised guidelines would promote ease of doing business and boost private players to invest in retail sector. The said Resolution is available on the website of MoPNG. The main features of the said guidelines are as below:-

 The resolution applies for marketing of only Motor Spirit and High Speed Diesel for “Bulk” and “Retail” business.

An entity desirous of seeking authorisation for either retail or bulk must have a minimum net worth of Rs. 250 crore at the time of making application. In case authorization is required for both retail and bulk, minimum net worth will be Rs.500 crore.

Separate applications to be made for retail and Bulk business.For retail authorisation, an entity has to set up at least 100 retail outlets, out of which 5% should be in the notified remote areas within 5 years of the grant of authorization. An effective mechanism has been prescribed to ensure that the entity deliver on its commitment to set up the ROs in remote areas.An entity is required to deposit prescribed Bank Guarantee amount as a security at the time of grant of authorization in addition to application fee.

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