By Naveed Qazi, Sustainability Analyst
Sustainable Alternative Towards Affordable Transportation, an initiative launched by Government of India in 2018, marks an important shift in India’s renewal energy strategy by treating organic waste as an economic resource than an environmental burden. The initiative envisages thousands of Compressed Biogas plants converting biomass into transport grade fuel while generating organic manure as commercially valuable by product. The model embodies clear circular economy principles.
Research has consistently highlighted India’s untapped potential. Writing in Energy Policy, Ravindranath and Balachandra (2009) argue that India’s vast agricultural economy generates enormous quantities of crop residue and animal waste that remain significantly underutilised, despite their considerable energy value. Likewise a 2021 report by NITI Aayog concludes that decentalised Compressed Biogas production could reduce dependence on imported natural gas, while strengthening rural employment and energy security.
Research has consistently highlighted India’s untapped potential. Writing in Energy Policy, Ravindranath and Balachandra (2009) argue that India’s vast agricultural economy generates enormous quantities of crop residue and animal waste that remain significantly underutilised, despite their considerable energy value. Likewise a 2021 report by NITI Aayog concludes that decentalised Compressed Biogas production could reduce dependence on imported natural gas, while strengthening rural employment and energy security.
The scale of the emerging industry is becoming increasingly visible. As of August 2026, 1,929 CBG and Bio-CNG plants had been registered across India, including 217 commissioned plants and 357 are under construction. This represents a substantial expansion from March 2025, when India had 150 CBG projects with a cumulative production capacity of 1,211 tonnes per day. Government of India has now moved beyond the original SATAT framework: in August 2026, the Union Cabinet approved the ₹23,731 crore GOBARdhan National Circular Bioenergy Scheme, covering 2026–27 to 2035–36, with the objective of increasing domestic CBG production nearly ten-fold.
Environmental Benefits and Implementation Challenges
The environmental rationale is equally compelling. Seasonal crop residue burning across northern India remains a major contributor to poor air quality and greenhouse gas emissions. In Energy Policy, Bhattacharya (2019) argues that converting agricultural waste into renewal fuel transforms an environmental liability into an economic asset. Farmers benefit not only from biomass but also from digestate, which can reduce reliance on chemical fertilisers, and improve soil quality.
Beyond these immediate gains, Sustainable Alternative Towards Affordable Transportation supports India’s climate commitments by promoting clear transport fuels, and rural industrialisation. As Singh et al. demonstrate in the Journal of Cleaner Production, compressed biogas can simultaneously reduce transport emissions, diversify energy sources, and stimulate local economic development.
Despite it’s ambitious vision, implementation has progressed more slowly than originally anticipated. Although hundreds of Letters of Intent have been issued, only a limited number of Compressed Biogas plants have entered commercial operation, highlighting structural rather than conceptual weakness.
The foremost challenge is feedstock logistics. Kumar et al., writing in Renewable and Sustainable Energy Reviews, identify biomass aggregation and transportation as principal barriers to commercial production because agricultural residues are scattered across millions of relatively small farms. Their low energy density makes collection and transport expensive, complicating year round supply.
Financing presents another obstacle. Although public sector oil marketing companies provide long term structural assurances, developers continue to face high development costs, and limited access to affordable credit. A 2022 assessment by the The Energy and Research Institute (TERI) finds that financial uncertainty remains a major obstacle for many unapproved projects vying to reach commercial operation, particularly those led by rural entrepreneurs.
Operational performance also remains uneven. Anaerobic digestion requires constant feed stock quality, careful biological process management and skilled technical supervision. In Energy Policy, Balachandra (2024) observes that renewable energy policies often prioritise energy targets over long term operational efficiency, leaving many facilities underutilised.
Institutional coordination compounds these challenges. Sustainable Alternative Towards Affordable Transportation spans multiple ministries. Bhattacharya (2011) argues in Energy Policy, that successful energy transitions depend upon coherent governance capable of reducing regulatory complexity.
International Lessons
The environmental rationale is equally compelling. Seasonal crop residue burning across northern India remains a major contributor to poor air quality and greenhouse gas emissions. In Energy Policy, Bhattacharya (2019) argues that converting agricultural waste into renewal fuel transforms an environmental liability into an economic asset. Farmers benefit not only from biomass but also from digestate, which can reduce reliance on chemical fertilisers, and improve soil quality.
Beyond these immediate gains, Sustainable Alternative Towards Affordable Transportation supports India’s climate commitments by promoting clear transport fuels, and rural industrialisation. As Singh et al. demonstrate in the Journal of Cleaner Production, compressed biogas can simultaneously reduce transport emissions, diversify energy sources, and stimulate local economic development.
Despite it’s ambitious vision, implementation has progressed more slowly than originally anticipated. Although hundreds of Letters of Intent have been issued, only a limited number of Compressed Biogas plants have entered commercial operation, highlighting structural rather than conceptual weakness.
The foremost challenge is feedstock logistics. Kumar et al., writing in Renewable and Sustainable Energy Reviews, identify biomass aggregation and transportation as principal barriers to commercial production because agricultural residues are scattered across millions of relatively small farms. Their low energy density makes collection and transport expensive, complicating year round supply.
Financing presents another obstacle. Although public sector oil marketing companies provide long term structural assurances, developers continue to face high development costs, and limited access to affordable credit. A 2022 assessment by the The Energy and Research Institute (TERI) finds that financial uncertainty remains a major obstacle for many unapproved projects vying to reach commercial operation, particularly those led by rural entrepreneurs.
Operational performance also remains uneven. Anaerobic digestion requires constant feed stock quality, careful biological process management and skilled technical supervision. In Energy Policy, Balachandra (2024) observes that renewable energy policies often prioritise energy targets over long term operational efficiency, leaving many facilities underutilised.
Institutional coordination compounds these challenges. Sustainable Alternative Towards Affordable Transportation spans multiple ministries. Bhattacharya (2011) argues in Energy Policy, that successful energy transitions depend upon coherent governance capable of reducing regulatory complexity.
International Lessons
India, at a global level, remains at an early stage of development in biomethane industry, despite abundant resources. In comparison, Germany remains a global benchmark. According to Scarlat, Dallemand, and Fahl in Renewable and Sustainable Energy Reviews (2018), decades of stable energy legislation, feed in tariffs, and technological innovations have enabled biomethane to be injected directly into the gas grid, supplying transport, industry and transport through diversified markets.
Italy has followed a similar successful path by upgrading existing agricultural biogas facilities and encouraging biomethane use in heavy transport. The International Energy Agency 2023’s report attributes this progress to stable financial incentives an close collaboration between farmers and energy companies.
Sweden, on the other hand, has adopted a distinctive municipal model. The European Biogas Association (2023) reports that municipalities routinely convert food waste and sewage sludge into biomethane for buses and refuse collection vehicles, supported by extensive refueling infrastructure and local government participation.
Brazil offers particularly relevant lessons because of its comparable agricultural profile. IEA Bioenergy (2022) notes that abudant sugarcane residues and concentrated livestock farming reduce feedstock collection costs, while integrating with the country’s ethanol industry has strengthened its broader renewal fuel strategy.
Even Estonia demonstrates a case of importance of good governance in the sector. According to European Commission (2022), predictable regulations, rigorous biomethane quality standards, and efficient integration with gas infrastructure have encouraged steady industry growth despite limited biomass resources.
Strengthening the Policy
When we compare these examples with Sustainable Alternative Towards Affordable Transportation in India, it faces fragmented feedstock systems, developing infrastructure and institutional coordination challenges. India is trying to overcome this while scaling at the market at the same time.
After evaluations, many effective policies can be put into place. Ravindranath and Balachandra argue for biomass aggregation organised through Farmer Producer Organisations, agricultural cooperatives and local collection centres.
Financing mechanisms also require strengthening. TERI recommends concessional lending, blended public-private finance, and risk sharing mechanisms to attract medium sized investors and rural entrepreneurs. Equally important is investment in technical capacity. Balachandra (2014) argues that long term plant performance depends as much on continuous training for engineers and operators as on physical infrastructure itself.
India can diversify biomethane utilisation beyond transport fuel such as gas distribution networks, industrial heating, and municipal transport which can create multiple sources of demand, as per International Energy Agency (2023). This strategy can likely improve market resilience and commercial viability.
When we compare these examples with Sustainable Alternative Towards Affordable Transportation in India, it faces fragmented feedstock systems, developing infrastructure and institutional coordination challenges. India is trying to overcome this while scaling at the market at the same time.
After evaluations, many effective policies can be put into place. Ravindranath and Balachandra argue for biomass aggregation organised through Farmer Producer Organisations, agricultural cooperatives and local collection centres.
Financing mechanisms also require strengthening. TERI recommends concessional lending, blended public-private finance, and risk sharing mechanisms to attract medium sized investors and rural entrepreneurs. Equally important is investment in technical capacity. Balachandra (2014) argues that long term plant performance depends as much on continuous training for engineers and operators as on physical infrastructure itself.
India can diversify biomethane utilisation beyond transport fuel such as gas distribution networks, industrial heating, and municipal transport which can create multiple sources of demand, as per International Energy Agency (2023). This strategy can likely improve market resilience and commercial viability.
Necessary Conclusions
Overall, Sustainable Alternative Towards Affordable Transportation remains one of India’s most innovative renewable energy policies because it not only integrates circular economy principles with climate mitigation, but also supports rural development and energy security, by intending to have right policy priorities in place.
Overall, Sustainable Alternative Towards Affordable Transportation remains one of India’s most innovative renewable energy policies because it not only integrates circular economy principles with climate mitigation, but also supports rural development and energy security, by intending to have right policy priorities in place.
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