CBG Policy & Incentives in India — What's Actually Changed in 2026

SATAT scheme — where it stands

The Sustainable Alternative Towards Affordable Transportation (SATAT) initiative remains the backbone of India's CBG push, with oil marketing companies contracted to purchase CBG at a fixed price for a fixed offtake volume. New entrants should confirm the current offtake price band with the relevant OMC before finalising a feasibility model — it is periodically revised.

CBG–CGD synchronisation

City Gas Distribution (CGD) licensees are now expected to source a rising minimum share of their supply as CBG, injected directly into their networks rather than only sold as standalone cylinders. For plant developers near an existing CGD network, this materially widens the offtake options beyond the OMC contract alone.

State-level incentives worth checking

• Capital subsidy on plant and machinery, varies by state
• Stamp duty exemption on land purchase for the plant
• Electricity duty exemption during the project's early operating years
• Priority allotment of government/municipal feedstock contracts

What this means in practice

Stack central viability-gap support, a state capital subsidy, and a CGD offtake agreement together and the project economics shift meaningfully compared to a plant relying on the OMC contract alone. Which combination applies depends entirely on your state and feedstock — that's the first thing we map out with any new site.