Scheme Guideline for Development of Pipeline Infrastructure (DPI) for Compressed Biogas (CBG) Offtake
The Development of Pipeline Infrastructure (DPI) scheme sets clear rules to connect Compressed Biogas (CBG) plants with City Gas Distribution (CGD) networks and national gas pipelines.
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India is not only working to reduce pollution but also its dependence on fossil fuels. The movement of the nation is towards clean energy, and Compressed Biogas (CBG) is a strong and useful alternative. CBG is made from waste such as crop residues, animal dung, and food waste. It is eco-friendly, safe and useful for transport to households and industries.
To make CBG reach cities and industries, proper pipelines are needed. Without pipelines, plants producing biogas cannot send it to consumers. To solve this, the Government of India launched the Development of Pipeline Infrastructure (DPI) scheme.
This scheme builds the backbone for CBG transport and connects plants with the City Gas Distribution (CGD) network and national gas pipelines. The DPI scheme supports clean bio-fuel, helps farmers, creates jobs, and reduces oil imports.
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What are the Scheme Guidelines for the Development of Pipeline Infrastructure (DPI) for the Facilitation of Compressed Biogas (CBG)?
The Development of Pipeline Infrastructure (DPI) scheme sets clear rules to connect Compressed Biogas (CBG) plants with City Gas Distribution (CGD) networks and national gas pipelines. The scheme provides financial help for laying pipelines, ensures milestone-based fund release, and promotes safe and quick project execution.
Under these guidelines, CBG producers, project developers, and gas pipeline operators can apply. It has two components, Component I covers CBG injection into CGD networks, while Component II focuses on linking CBG clusters to gas transmission pipelines. Strict technical, safety and environmental standards are part of its guidelines.
The DPI scheme helps move CBG directly from plants to markets, supports clean energy, boosts farmers' income, creates jobs, and builds a strong supply chain for renewable fuel across India.
Objectives of the DPI Scheme
The DPI scheme was designed with strong goals:
- Promote Compressed Biogas (CBG) as a green fuel.
- Build pipelines that connect CBG plants to gas networks.
- Lower dependence on imported natural gas and oil.
- Provide farmers with extra income from agricultural waste.
- Support India's clean energy and Net Zero 2070 targets.
- Generate jobs in pipeline construction and maintenance.
- Help industries and vehicles transition to clean energy solutions.
- Strengthen India's energy security.
Institutional Framework for Scheme Execution
The DPI scheme operates with a clear structure and ensures smooth and transparent execution. Four bodies handle these responsibilities:
1. Steering Committee (SC)
- The Secretary, Ministry of Petroleum & Natural Gas (MoPNG), chairs it.
- It includes representatives from Housing & Urban Affairs, Drinking Water and Sanitation, and New and Renewable Energy.
- Provides directions, approves guidelines, monitors progress, and resolves challenges.
- Meets at least once every three months.
2. Project Approval Board (PAB)
- Chaired by the Secretary, MoPNG.
- Members include officials from IOCL, GAIL, and the PMA.
- Approves projects recommended by the PAC.
- Final approval is mandatory before implementation.
3. Project Appraisal Committee (PAC)
- Led by the Additional/Joint Secretary, MoPNG.
- Includes oil and gas companies and ministry representatives.
- Appraises proposals, recommends projects to PAB, and guides PMA.
- Also checks progress and suggests changes if needed.
4. Project Management Agency (PMA)
- Manages daily implementation.
- Develops the online portal for applications.
- Verifies details, evaluates projects, and monitors financial support.
- Ensures transparency using digital tools.
- Acts as a link between beneficiaries and the Central Nodal Agency (CNA).
Component I: CBG Injection into CGD Network
This part of the scheme provides financial support to lay pipelines from CBG plants to City Gas Distribution (CGD) networks.
1. Funding Pattern
Steel pipeline: ₹ one crore per km (assumed cost). Assistance of 50% or ₹50 lakh per km, whichever is less.
MDPE pipeline: ₹0.15 crore per km. Assistance of 50% or ₹7.5 lakh per km, whichever is less.
Maximum assistance: ₹28.75 crore per project (for up to 75 km).
No assistance beyond 75 km.
2. Disbursement in Milestones
Approval stage: 10% advance against a bank guarantee.
50% construction: 40% release (if advance taken) or 50% (if not).
Completion & commissioning: Remaining assistance after confirmation of 50% volume utilisation for 3 months.
3. Eligibility
CBG plants with a minimum 2 TPD capacity.
Plants registered on GOBARdhan portal.
Must have an agreement with CGD entities ensuring a 50% take-or-pay commitment.
Under-construction plants must have at least 25% physical progress.
4. Application Process
Applications must be submitted through the portal by 30.09.2025.
Evaluated by PMA based on DPR, financial closure, and verification.
PAC recommends, PAB approves within 2 months.
5. Post-Approval
The beneficiary must obtain approvals and complete the pipeline within 1 year.
PAC may grant extensions on PMA's recommendation.
Final assistance is released after verification and confirmation of usage.
Component II: CBG Injection into Gas Pipeline Network
This component supports Gas Pipeline Operators (GPOs) to connect CBG clusters or plants with transmission pipelines.
1. Funding Pattern
- Steel pipeline: ₹1.5 crore per km (assumed cost). Assistance of 50% or ₹75 lakh per km, whichever is less.
- MDPE pipeline: ₹0.15 crore per km. Assistance of 50% or ₹7.5 lakh per km, whichever is less.
- Financial aid up to 75 km (includes plant-to-Gas Gathering Station + GGS-to-pipeline distance).
- No aid beyond 75 km.
2. Disbursement in Milestones
- Approval stage: 10% advance against a bank guarantee.
- 50% construction: 40% release (if advance taken) or 50% (if not).
- Completion & commissioning: Final release after confirming 50% utilisation.
3. Eligibility
Only Gas Pipeline Operators authorised by PNGRB or operating dedicated/captive pipelines are eligible. CBG plants connected must:
- Be registered on GOBARdhan portal.
- Have at least 10 TPD production capacity.
- Under-construction plants must show 25% physical progress.
- An agreement between GPO and the producer must ensure at least a 50% take-or-pay commitment.
4. Application and Approval
- Applications accepted via portal until 30.09.2025.
- PMA verifies, PAC appraises, and PAB gives final approval.
- Approvals issued within 2 months.
Responsibilities of Beneficiaries
Beneficiaries receiving support under the scheme must:
- Maintain and operate pipelines safely.
- Use pipelines only for biogas supply.
- Follow all regulatory and safety standards.
- Remain responsible for upkeep, security, and compliance.
- Risk recovery of assistance if responsibilities are not fulfilled.
Regulations, Tariffs, and Monitoring of the DPI Scheme
1. Until special biogas/CBG rules come into effect, existing CNG safety rules apply.
2. Tariffs (the price charged for gas) must be agreed upon fairly between the parties involved (producer, transporter, buyer). Subsidy from the scheme is not included in the tariff calculation.
3. Monitoring
- Use of online tools, field visits, and desk reviews by MoPNG and PMA.
- Mid-term and final evaluations are conducted via a third-party agency.
- Audits of project portfolio.
Benefits of the DPI Scheme
The scheme brings multiple benefits:
- Increases renewable energy supply.
- Reduces air pollution and carbon emissions.
- Helps farmers by using crop residue and waste.
- Prevents CBG flaring and wastage.
- Boosts the rural economy and job creation.
- Strengthens India's energy security by reducing its reliance on imports.
Future Prospects of the DPI Scheme and CBG in India
The DPI scheme will shape the future of CBG in India. The demand for clean bio-fuel is growing due to rising pollution and climate commitments. By 2030, India aims to have thousands of CBG plants connected through pipelines. Future prospects include:
- Large-scale replacement of fossil fuels with CBG.
- Expansion of city gas networks powered by CBG.
- There is increased participation of private players in pipeline infrastructure.
- The export potential of bio-CNG will become apparent once surplus production begins.
- Strong contribution to India's goal of becoming energy self-reliant.
Conclusion
The Scheme Guidelines for Development of Pipeline Infrastructure (DPI) for Compressed Biogas (CBG) create a strong base for a cleaner energy future in India. By focusing on CBG injection into CGD networks and gas pipelines, the scheme helps reduce pollution, cut down on fossil fuel use, and improve energy security. The DPI scheme also helps farmers, industries and transport by converting waste into clean fuel. It creates new opportunities for jobs, boosts rural incomes and supports the national goal of a green economy. With clear objectives, well-planned components, and defined responsibilities, the DPI plan executes smoothly. Its benefits reflect India’s commitment and dedication to sustainable energy. This is not just any scheme, but the upgradation of compressed biogas through pipeline infrastructure shows how self-reliant, eco-friendly and energy secure India is as a nation.
About the Author
Mahek Sancheti
Content WriterMahek Sancheti, BAJMC graduate with a deep passion for writing. As a content writer, video content creator, creative content creator, and scriptwriter, I bring stories to life through words and visuals. I honed my skills by working with a prominent news agency, where I excelled in crafting compelling narratives and engaging content. Coming from a journalism and mass communication background I have skills to craft engaging narratives that captivate audiences. With a keen interest in writing and creativity, I aim to deliver impactful and meaningful content that resonates with diverse audiences.
https://www.linkedin.com/in/mahek-sancheti-837196212
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