SATAT Scheme: Everything You Need to Know

SATAT Scheme: Everything You Need to Know

The Union Ministry of Petroleum and Natural Gas & Skill Development and Entrepreneurship has launched the SATAT initiative in October 2018. This scheme has invited an Expression of Interest to the PSU Oil Marketing Companies and the potential entrepreneurs for CBG (Compressed Bio Gas) production and marketing. It is an excellent initiative for a sustainable alternative to fossil fuel and achieving climate change goals. Let’s dive into ‘SATAT Scheme: Everything You Need to Know’ for more details.

SATAT Scheme full form

SATAT stands for the Sustainable Alternative Towards Affordable Transportation.

SATAT Scheme details

The scheme is aimed at fulfilling Mahatma Gandhi’s vision of “Clean India” by managing wastes to produce eco-friendly energy sources. Farmers, vehicle-users and potential entrepreneurs will be benefitted from the scheme.

SATAT Scheme Ministry

The Union Ministry of Petroleum and Natural Gas & Skill Development and Entrepreneurship.


The SATAT scheme is structurally backed by the The National Policy on Biofuels 2018, which envisaged on active promotion of advanced bio-fuels, CBG (Compressed Bio Gas). The Government of India had launched the GOBAR-DHAN (Galvanising Organic Bio-Agro Resources) scheme with a view to managing cattle dung and other forms of solid wastes in farms to CBG and compost. The GOBAR-DHAN programme is being funded under Solid and Liquid Waste Management (SLWM), functional unit of Swachh Bharat Mission-Gramin (SBM-G). The programme will be executed through Gram Panchayats.

The Ministry of New and Renewable Energy has announced Central Financial Assistance (CFA) of Rs. 4 crore per 4,800 kg of CBG per day generated from 12,000 cubic metres of biogas per day. The upper limit of such project is Rs.10 crore per.

Reserve Bank of India has also put CBG plants into “priority sector” list for lending and smooth assistance. State Bank of India has announced a friendly policy to finance CBG projects across the nation. Other Public sector Banks are also planning to finance such a prospective “priority sector”.

Ministry of Agriculture is encouraging the promotion of organic farming and focusing on enhance revenue from the sale of bi-products of CBG plants. “Fermented Organic Manure” is one of such bi-product from CBG plants.

SATAT Scheme and the Paris Agreement

The COP-21 or the Paris Agreement was signed to reduce greenhouse gas emission on 2 October 2016. 195 countries including India were asked to submit Nationally Determined Contributions (NDC). The main goal was to slow down the continuous rise of global temperature. India has launched the Green India Mission to be fulfilled by 2030. SATAT scheme is one of the schemes to carry out the mission. Many PSU OMCs (Public Sector Undertakings Oil Marting Companies) including Indian Oil Corporation Limited (IOCL) had invested to set up CBG plants and supply CBG under this scheme.

Implementation of SATAT Scheme

CBG has been emerged as an organic source of energy for the automotive industry and many others. Thus the Central Government of India has formulated SATAT Scheme Guidelines and taken some initiatives:

  1. The National Policy on Biofuels 2018: to promote bio-fuels.
  2. The GOBAR-DHAN (Galvanising Organic Bio-Agro Resources) Scheme: to make use of cattle dung and solid wastes of farms.
  3. Swachh Bharat Mission Gramin focusing on solid and liquid waste management.
  4. The Reserve Bank of India has categorised CBG plants in the ‘priority sector’ to encourage financing.

Objectives of SATAT scheme

  1. Reduce carbon emissions and pollution from burning organic wastes.
  2. Make proper use of more than 62 million metric tonnes of organic wastes generated every year.
  3. To install 5,000 CBG plants across India by 2025. 250 plants have been rolled out by 2020.
  4. The target of this scheme is to produce 15million metric tonnes of CBG by 2023.
  5. Potential entrepreneurs can get a good source of income and additional revenue for farmers, cattle owners and some industries.
  6. Less dependence on imported fossil fuels.
  7. Plantation of Forests to encourage rural economy and employment.
  8. Used as a buffer against price fluctuations of petroleum products.
What is Compressed Biogas (CBG)?

It is an organic gas produced through the anaerobic decomposition of biomass sources like agriculture residue, sugarcane press muds, cattle dung, biodegradable wastes of various industries, municipal solid wastes, sewage treatment plant wastes, etc compressed and purified. It is almost similar to Compressed Natural Gas (CNG) with a high calorific value. It contains over 90% pure methane.

Anaerobic Decomposition: It is the process of degradation of organic waste by micro-organisms in the absence of oxygen.

Fermented Organic Manure: A bi-products of CBG production which is used as an organic fertilizer.

CNG Plant How It works SATAT Scheme Everything You Need to Know
CNG Plant How It works

Benefits of CBG Plants

  • Regulated waste management.
  • Carbon footprints and associated pollution will be curbed.
  • There will be a reduction on dependency on natural gas and crude oil.
  • Additional income source for farmers.
  • Rural economy and employment will get a huge boost.
  • Another line of defense in order to combat climate change.

The article is written to provide a complete view on SATAT scheme upsc and for other competitive examination.

SATAT Scheme pdf


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