Revised CBG Pricing Framework Supports Producers While Ensuring Minimal Impact On Consumers
Distilled Policy Brief
- The Ministry of Petroleum and Natural Gas clarified the revised Compressed Bio-Gas (CBG) pricing framework under the GOBARdhan scheme, raising the procurement price for CBG producers to ₹2,110 per MMBTU to ensure plant viability.
- To cushion consumers, the Government provides a financial viability support of ₹10/kg (~₹215 per MMBTU), bringing the effective CBG procurement cost to ₹1,895 per MMBTU.
- The total CBG procurement cost is now distributed across a domestic gas pool 2.5 to 3 times larger than before, ensuring negligible price impact on domestic PNG and CNG consumers.
🎯 Prelims High-Yield Examination Points
Under the GOBARdhan scheme, CBG producers are supported via a revised procurement price and a government viability support of ₹10/kg for CBG with 95% methane content.
⚖️ Mains Analytical & Syllabus Linkages
Examine how combining targeted viability gap support with gas cost-pooling mechanisms helps balance economic viability for biofuel producers while insulating consumers from retail price hikes.
🎯 UPSC Prelims Practice Drill
With reference to the revised Compressed Bio-Gas (CBG) pricing framework under the GOBARdhan scheme, consider the following statements: 1. The procurement price for CBG producers has been set at ₹2,110 per MMBTU to ensure plant viability. 2. The entire revised procurement cost of CBG is passed directly onto domestic PNG and CNG consumers without government assistance. 3. Under the new framework, the CBG cost is distributed across a domestic gas pool that is 2.5 to 3 times larger than the earlier allocation pool. Which of the statements given above is/are correct?
- [A] 1 and 2 only
- [B] 1 and 3 only
- [C] 2 and 3 only
- [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
Statements 1 and 3 are correct. Under the GOBARdhan scheme, the CBG procurement price is fixed at ₹2,110 per MMBTU, and its cost is now distributed across a domestic gas pool 2.5 to 3 times larger than before to minimize price impact on individual consumers. Statement 2 is incorrect because the government provides a financial viability support of ₹10/kg (~₹215 per MMBTU), reducing the effective cost to ₹1,895 per MMBTU rather than passing the full amount onto consumers.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.