IBA explains that removing excise on the biogas portion eliminates a key barrier, making blended fuels cheaper and projects financially attractive. City gas distributors blending just 5% CBG in the coming five years would need 2.5-3 MMTPA supply, triggering Rs 45,000-55,000 crore in capital spending.

Optimistic projections show blending hitting 7-8% by 2032 under favorable policies, pushing total investments to Rs 1 lakh crore. This windfall addresses inequities where renewable CBG faced the same duties as fossil-based CNG.

Consumers win with potentially lower gas bills, while producers secure reliable markets. The policy fuels private investments, strengthens energy independence, and drives rural growth by valorizing abundant feedstocks: 60 million tonnes potential from farm residue, sewage, and livestock waste yearly.

Post-waiver, typical plants’ viability surges, enabling funding for previously stalled initiatives. CBG’s lifecycle emissions drop rivals any green fuel, cutting 70-90% GHGs. Scaling to 10% blend could avert 12-15 million tonnes of CO2 annually.

As India grapples with stubble burning and waste management, this exemption paves the way for a circular economy, blending innovation with sustainability for a cleaner tomorrow.